Institutional Small/Micro-Cap Value Strategy
Investment Strategy:
The Small/Micro-Cap Value Strategy invests in U.S. companies with market capitalizations between $30 million and $3 billion, although purchases are typically made between the range of $70 million and $1.2 billion. We believe that disciplined, fundamental, bottom-up research is the key to gaining an information advantage.
The success of this portfolio will be achieved by identifying companies that trade at significant discounts to what we believe to be their intrinsic value. We feel it is critical to identify a material catalyst that will effect a long-term, sustainable growth in intrinsic value.
A typical portfolio will focus on the stocks of approximately 55-75 companies. In addition to favorable valuations at the time of purchase, these companies will have strong balance sheets with liquidity and solvency characteristics that provide a margin of safety. An owner/operator/founder management structure and a corporate philosophy of alliance with customers, suppliers, shareholders and employees characterize the company cultures.
We tend to overweight our best ideas in the portfolio. The portfolio is not necessarily diversified across broad economic sectors and industries and can exhibit moderate volatility. We target companies with increasing intrinsic values which allow our holdings to grow and build shareholder value over long periods of time. We are very long-term investors which additionally benefits our taxable investors.The strategy has returned positive, double-digit returns in each of the last 5 years.
Small/Micro-Cap Value Strategy Information
Please click on any of the links to download additional detailed information about the Morgan Dempsey Small/Micro-Cap Value Strategy. By downloading these files you agree to have read and understood the disclosures provided here.
- Executive Summary (2 page .pdf)
- Small/Micro-Cap Presentation (16 page .pdf)
- Monthly Performance Composite (3 page .xls)
- Strategy Information (13 page .pdf)
- Firm Information (4 page .pdf)
- Quarterly Commentary (3 page .pdf)
