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SMA Inception Date: 11/1/2002
Objective: Seeks to generate consistent, long-term investment performance in excess to the Russell 2500TM Index

Why Choose This SMA?

  • As an actively managed Small/Mid Cap allocation
  • To focus on small company stocks of attractively valued companies with prospects for sustainable growth and profitabiity
  • As a complement to a more diversified index product

Investment Strategy

  • The investment universe includes all stocks generally within the market cap range of the benchmark at initial purchase
  • We believe that known and recurring inefficiencies are available in the small cap market causing stock prices to deviate from their intrinsic value
  • These inefficiencies can be categorized into three areas: misunderstood franchises, underfollowed and special situations
  • A repeatable investment process can uncover higher quality businesses that are trading at a discount to intrinsic value utilizing rigorous fundamental research
  • Disciplined bottom-up portfolio construction within a risk aware framework
  • Sector guidelines: typical range is +/- 50% for benchmark sectors over 10%
  • Individual security exposure: typical positions range from 0.5 to 2.5%, with no one stock typically greater than 3% of the portfolio
  • 75 to 100 stocks typically; turnover: 25% to 50% annually

Portfolio Managers

Joseph R. Gatz, CFA®

Vice President and Portfolio Manager

Full Bio

Jeffrey Schwartz, CFA®

Vice President and Portfolio Manager

Full Bio



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

All securities are subject to risk, including possible loss of principal. Please read the risks associated with each investment prior to investing. Detailed discussions of each investment’s risks are included in Part 2A of each firm’s respective Form ADV. The investments highlighted in this presentation may be subject to certain additional risks. The views and opinions expressed may change based on market and other conditions. This material is provided for informational purposes only and should not be construed as investment advice. There can be no assurance that developments will transpire as forecasted. Actual results may vary. This document may contain references to third party copyrights, indexes, and trademarks, each of which is the property of its respective owner. Such owner is not affiliated with Natixis Investment Managers or any of its related or affiliated companies (collectively “Natixis”) and does not sponsor, endorse or participate in the provision of any Natixis services, funds or other financial products. The index information contained herein is derived from third parties and is provided on an “as is” basis. The user of this information assumes the entire risk of use of this information. Each of the third party entities involved in compiling, computing or creating index information disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to such information.

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