Micro Cap Equity

Seizert Micro Cap Equity focuses on companies with market capitalizations within the range of the Russell Microcap® Index. These companies are carefully combined to provide a relatively concentrated portfolio of 40 to 80 holdings.

Strategy AUM

(as of Sep. 30, 2017)

$28 million
Inception Date April 2014
Number of Holdings 42
Primary Benchmark Russell Microcap® Index
Weighted Average Market Cap $384 million

Performance

Performance data is based upon a representative account for this strategy. Past performance does not guarantee future results and future performance may be lower or higher than the performance presented, including the possibility of loss of principal. Returns for one year or greater are annualized.

Returns are presented both gross and net of management fees and reflect the reinvestment of dividends and other earnings. Gross of fee returns are calculated gross of management and custodial fees and net of transaction costs. Net of fee returns are calculated net of management fees and transaction costs. Net of fee returns were calculated by deducting the actual annual client fees, pro-rated on a quarterly basis. The composite was created in April 2014 and consists of non-taxable accounts managed in a “Micro Cap” style, there was no account minimum. Beginning July 1, 2017 the composite has consisted of non-taxable and taxable “Micro Cap” accounts. As of 7/1/17 the minimum account size for this composite is $200,000. A complete list of composite descriptions is available upon request by emailing info@seizertcapital.com. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.

Portfolio Characteristics

Representative Account as of 9/30/17     Source: FactSet

Portfolio Russell Microcap® Index
Weighted Harmonic Avg. Price/Earnings Trail 16.68x 15.38x
Weighted Harmonic Avg. Price/Earnings Forward 14.26x 18.78x
Weighted Harmonic Avg. Price/Book 1.68x 1.75x
Weighted Harmonic Avg. Price/Cash Flow 9.95x 9.33x
Debt/Capital 15.93% 31.47%
Return on Capital 10.77% -24.94%
Return on Equity 14.59% -2.45%
Dividend Yield 1.45% 1.06%
5 Year Historical Growth Rate 14.23% 7.67%
Active Share 97.26% n/a

Documents

Commentary

Sep 2017

Top Holdings

Representative Account as of 9/30/17     Source: FactSet

Company Name % of Portfolio
VSE Corporation 4.0%
National Presto Industries, Inc. 3.7%
Cass Information Systems, Inc. 3.5%
inTEST Corporation 3.2%
Coastway Bancorp, Inc. 3.1%
FS Bancorp, Inc. 3.0%
Net 1 UEPS Technologies, Inc. 3.0%
Liberty Tax, Inc. Class A 3.0%
HCI Group, Inc. 3.0%
Entegra Financial Corp. 2.9%

Portfolio Sector Weightings vs. Index

Representative Account as of 9/30/17     Source: FactSet

Portfolio characteristics, top ten holdings, sector allocation and market capitalization are based on a representative portfolio which is an account in the composite that we believe most closely reflects current portfolio management style for this strategy. Performance is not a consideration in the selection of the representative portfolio. The information of the representative portfolio shown may differ from that of other accounts in the strategy. The top ten holdings identified and described do not represent all securities purchased, sold, or recommended for clients in the composite and no assumption should be made that such securities or future recommendations were or will be profitable in the future. Portfolio holdings are subject to change without notice.  A complete list of holdings for previous 12 months is available upon request. Characteristics use Weighted Harmonic Average effective as of 6/30/17.

Benchmark returns have been obtained from Interactive Data Corporation, a non-affiliated third-party source. The Russell Microcap® Index is a capitalization weighted index of 2,000 stocks that captures the smallest 1,000 companies in the Russell 2000, plus 1,000 smaller U.S.-based public stocks.

Investing in any strategy has risks. Accounts are subject to price volatility and the value of an account’s portfolio will change as the prices of investments go up or down. Before investing in a strategy, you should consider the risks of the strategy as well as whether the strategy is suitable based upon your investment objectives. This communication is provided for informational purposes only. It is not an offer to sell, or a solicitation for the offer to purchase, a security in any jurisdiction where such an offer, solicitation or sale would be unlawful. An investment in accordance with a Seizert Capital Partners strategy may only be pursuant to an executed investment agreement.