Fundamental International Small Cap Strategy
A Differentiated Approach to International Small Cap Investing
We believe our approach of thoroughly understanding the quality of businesses allows us to build a concentrated portfolio of underappreciated opportunities with the highest potential upside. Our belief is that investing in companies that are generating cash and using it to create value for shareholders delivers superior risk-adjusted performance and that the market rewards companies over time for their free cash flows rather than their reported earnings.
We believe companies that meet our quality standards generate value over time and purchasing these companies at a discount to intrinsic value maximizes potential upside. Business-specific qualities are the largest determinant of value creation over time. We believe integrating ESG factors into our approach increases return potential while lowering risk.
The strategy seeks to achieve long-term capital appreciation. We invest in a company only if we see a significant upside to our estimate of intrinsic value. We focus on finding the best opportunities in any market, naturally leading to diversification across regions and sectors.
Investment Process: Overview
Risk Management Encompasses Entire Process
Fast-Growing, Attractively Priced Companies Outperform
Active Return by Earnings Yield Quintile (1 Year Holding Period)*
We seek to buy companies with proven business models that have sustainable growth trajectories. By thoroughly understanding company fundamentals, we are able to assess intrinsic value and make high-conviction investments that we hold for long periods of time. We are disciplined about valuation, buying only stocks trading at significant discounts.
Fundamental International Small Cap at SBH
35–50 Number of stocks
19 Years portfolio manager has managed the strategy
$107.7M Strategy AUM/AUA**
John C. Fenley, CFA
Director of Fundamental International Strategies
BA, Vanderbilt University
MBA Duke Fuqua School of Business
To learn more, reach us at firstname.lastname@example.org
*Source: FactSet, Internal calculations. Equal-weighted holdings, rebalanced monthly,1/31/2003 through 12/31/2019. Past performance does not guarantee future results.
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
**As of December 31, 2021. Model UMA assets of $0M are included in the AUA portion of the AUM/AUA total. All opinions expressed in this material are solely the opinions of Segall Bryant & Hamill. You should not treat any opinion expressed as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of the manager’s opinions. The opinions expressed are based upon information the manager considers reliable, but completeness or accuracy is not warranted, and it should not be relied upon as such. Market conditions are subject to change at any time, and no forecast can be guaranteed. Any and all information perceived from this material does not constitute financial, legal, tax or other professional advice and is not intended as a substitute for consultation with a qualified professional. The manager’s statements and opinions are subject to change without notice, and Segall Bryant & Hamill is not under any obligation to update or correct any information provided in this material.