SMA Inception Date: 12/31/2013
Objective: Long-term capital appreciation
Why Choose This SMA?
- As a high active share, concentrated small cap equity allocation.
- As an alpha-generating small cap position based on strong bottom-up fundamental analysis.
- To add a seasoned management team with the ability not only to capture upside market potential but also to protect on the downside.
- WCM uses a bottom-up approach that seeks to identify small cap companies with attractive fundamentals, such as strong earnings power, a sound business strategy, and alignment of corporate incentives.
- The managers seek to partner with smart capital allocators (company management) who create strong cultures, and protect/prolong the period of competitive advantage.
- Above-average returns can only be achieved by structuring portfolios distinct from market indices. As a result, the strategy typically holds 25-40 companies, concentrated around the managers’ best ideas.
- Initial position size ranges from 1% to 2%.
- Full position size ranges from 3% to 6% with weightings based on assessment of valuation and quality.