Micro Cap

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

Strategy AUM

(as of Dec. 31, 2019)

$21 million
Inception Date April 2014
Number of Holdings 58
Primary Benchmark Russell Microcap® Index
Weighted Average Market Cap $387 million

Performance

Performance data is based on the firm’s composite 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. Composite 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. Accounts with $0 commission costs have been included in the composite. 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. Our advisory fees are disclosed in Form ADV, Part 2A. A complete list of composite descriptions, policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request by emailing info@seizertcapital.com.

SCP Factors

Source: FactSet.  Factor Exposure reflects a representative account as of 12/31/2019.

The SCP Valuation Factor is a weighted aggregate of over 20 components that are ranked relative to the Russell Microcap benchmark. This ranking ranges from 1 to 100 in percentile format, with lower values (less than the 50th percentile) being more attractive relative to the benchmark. The green circle is representative of the weighted average SCP Microcap portfolio score as it relates to the SCP Valuation Factor. We believe this best represents our effort to maintain a favorable Valuation exposure to characteristics relative to the Russell Microcap Index.

The SCP Quality Factor is a weighted aggregate of over 20 components that are ranked relative to the Russell Microcap benchmark. This ranking ranges from 1 to 100 in percentile format, with lower values (less than the 50th percentile) being more attractive relative to the benchmark. The green circle is representative of the weighted average SCP Microcap portfolio score as it relates to the SCP Quality Factor. We believe this best represents our effort to maintain a favorable Quality exposure to characteristics relative to the Russell Microcap Index.

The SCP Market Reaction Factor is a weighted aggregate of over 10 components that are ranked relative to the Russell Microcap benchmark. This ranking ranges from 1 to 100 in percentile format, with lower values (less than the 50th percentile) being more attractive relative to the benchmark. The green circle is representative of the weighted average SCP Microcap portfolio score as it relates to the SCP Market Reaction Factor. We believe this best represents our effort to maintain a favorable Market Reaction exposure to characteristics relative to the Russell Microcap Index.

SCP Factors are built from numerous underlying components that are then scored and ranked with respect to the Russell Microcap Index. The information provided is based on actual data and combined to show the back-tested compounded return of market factors. Back-tested performance is not actual performance, but is hypothetical.

Portfolio Sector Weightings vs. Index

Representative Account as of 12/31/19     Source: FactSet

Documents

Fact Sheet

Dec 2019

Commentary

Dec 2019

Portfolio Sector Weightings and Factor Exposure vs Index reflect information for a representative account from the Micro Cap composite which we believe is illustrative of this strategy. Results for accounts in the composite or strategy may vary over time, due to timing, cash flows, among other things. The information provided should not be considered a specific recommendation to purchase or sell any securities and is subject to change.

Indices are unmanaged. The figures for the index reflect the reinvestment of all income or dividends, as applicable, but do not reflect the deduction of any fees or expenses which would reduce returns. Investors cannot invest directly in indices. The indices referenced have been selected because they are well known, easily recognized by investors, and reflect those indices that SCP believes, in part based on industry practice, provide a suitable benchmark against which to evaluate the investment or broader market. The Russell Microcap® Index measures the performance of the microcap segment of the U.S. equity market. Microcap stocks make up less than 3% of the U.S. equity market (by market cap) and consist of the smallest 1,000 securities in the small-cap Russell 2000® Index, plus the next 1,000 smallest eligible securities by market cap. Index performance information was furnished by an unaffiliated third party and is deemed to be reliable, and is believed to be accurate, but not guaranteed and the information is subject to correction.

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.