Small Cap Value Strategy

Using in-depth proprietary research to uncover investments with the potential to offer consistent returns over the long term and downside protection through market cycles.

Our experienced small cap equity investment team conducts bottom-up research, looking for companies with management teams that are focused on sustainable and/or improving return on invested capital (ROIC) and low embedded expectations. These efficient allocators of capital typically service niche markets and have defendable competitive advantages.

Investment Philosophy

Our Small Cap Value equity philosophy is founded on the belief that excess returns are achieved by investing in companies at or near inflections in expected Return on Invested Capital (ROIC). We seek to utilize our investment process to identify catalysts of change for improved returns while guarding for risk.

Strategy Description

Our Small Cap Value (SCV) portfolio utilizes a value investment approach and consists of companies with a market capitalization that does not typically exceed the largest market capitalization company in the Russell 2000® Value Index.

Our Approach

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image of PSN 6 stars award    image of PSN manager of the decade award

Small Cap Value 6 Stars Small Cap Value Universe
Small Cap Value Manager of the Decade Small-Mid Value Universe

 

Strategy Details

Portfolio Diversification

75 to 85 securities diversified across industries

Sector weights 0 to +125% versus benchmark

Maximum 5% in any one security

Turnover: Typically 45–65% annually


Strategy Inception Date1/1/08

VehiclesSeparate Account, Mutual Fund

Benchmark2—Russell 2000 Value Index


ROIC Team at SBH

11 Years of Average Tenure With SBH

23 Years of Average Experience for Portfolio Managers

$2293.4M Strategy AUM/AUA*

 

 

Portfolio Managers

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Mark T. Dickherber, CFA, CPA

Director of Small Cap Strategies
B.S., University of Missouri-St. Louis

 

image of Shaun Nicholson

Shaun Nicholson

Senior Portfolio Manager
MBA, University of Missouri-St. Louis
B.S., Seton Hall University

 

To learn more, reach us at contactus@sbhic.com

 

VIEW FACTSHEET

 

1Represents performance of Russell 2000 companies ranked in the top two quintiles for highest in terms of ROIC. Source: Furey Research Partners, FactSet. As of 12.31.19.

2The Russell 2000 Value Index is a subset of the Russell 3000 Index and measures the performance of 2,000 small cap value companies. These companies generally have a weighted average market value of $1.8 billion.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

*As of September 30, 2021. Model UMA assets of $0M are included in the AUA portion of the AUM/AUA total. All opinions expressed in this presentation 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 presentation 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 presentation.

PSN Top Guns 6 Star Category. As of 9/30/2021.

6 STAR CATEGORY: The peer groups were created using the information collected through the PSN investment manager questionnaire and uses only gross of fee returns. PSN Top Guns investment managers must claim that they are GIPs compliant. Products must have an r-squared of 0.80 or greater relative to the style benchmark for the recent five year period. Moreover, products must have returns greater than the style benchmark for the three latest three-year rolling periods. Products are then selected which have a standard deviation for the five year period equal or less than the median standard deviation for the peer group. The top ten information ratios for the latest five-year period then become the TOP GUNS.

PSN Top Guns Manager of the Decade. As of 12/31/2020.

Criteria: The PSN universes were created using the information collected through the PSN investment manager questionnaire and use only gross of fee returns. Mutual fund and commingled fund products are not included in the universe. PSN Top Guns investment managers must claim that they are GIPS compliant. Products must have an r-squared of 0.80 or greater relative to the style benchmark for the ten-year period ending DECEMBER 31, 2020. Moreover, products must have returns greater than the style benchmark for the ten-year period ending DECEMBER 31, 2020 and also standard deviation less than the style benchmark for the ten-year period ending DECEMBER 31, 2020. At this point, the top ten performers for the latest ten-year period ending DECEMBER 31, 2020 become the PSN Top Guns Manager of the Decade.