Small/Mid (SMID) Cap Value

Cary Street Murals

Carytown; Richmond, VA

Cary Street Murals

Carytown; Richmond, VA

About Small/Mid (SMID) Cap Value

Investment Objective

The SMID Cap Value team seeks to provide a return that outperforms the Russell 2500™ Value Index, net of our management fee, over a full market cycle.

Investment Overview

TSW’s SMID Cap Value strategy applies a bottom-up, fundamental approach to investing. We seek stocks having a combination of three characteristics: mispriced shares relative to our estimate of intrinsic value, identifiable catalysts for positive change and upside potential that meaningfully exceeds downside risk over an 18 to 36-month time horizon.

Investment Process

TSW employs a disciplined investment process—applied and refined over decades—designed to identify attractive securities and to build portfolios to meet our clients’ objectives. Process, not herd instincts or emotion, drives every

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Strategy Highlights

Repeatability: a tenured team executing a consistently applied process

A tenured team with over a decade of averaged experience working together

A time-tested approach

  • Bottom-up, fundamental process
  • Searching for mispriced stocks exhibiting signs of positive change
  • Seeking favorable reward versus risk profile
  • A long-term investment horizon
ASSET CLASS / STYLE
U.S. Equity / Value
Composite AUM
$906.3M
BENCHMARK
Russell 2500™ Value Index
vehicles available

Separate Account

Sponsored (SMA/UMA)

Collective Trust

DST

SMID Cap Value Trailing Performance

As of  

June 30, 2024

Calendar year performance reflects past 10 years of data available.

Benchmark: Russell 2500™ Value Index. The Russell 2500™ Value Index measures the performance of the small to mid-cap value segment of the U.S. equity universe. It includes those Russell 2500 companies with relatively lower price-to-book ratios, lower I/B/E/S forecast medium term (2 year) growth and lower sales per share historical growth (5 years). Benchmark Source: Russell Investments. Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group.

Periods less than one year are not annualized. Performance represents the SMID Value composite.  Performance is shown gross and net of management fees and includes reinvestment of dividends and other income. Gross returns will be reduced by investment advisory fees and other expenses that are incurred in the management of the account. Net of fee performance was calculated using the actual management fees charged. These figures have been rounded to the nearest hundredth.  Past performance is no guarantee of future results. It is not possible to invest directly in an index. Performance disclosures can be found here.

Please see Risk Disclosures for important information.

Calendar year performance reflects past 10 years of data available.

Benchmark: Russell 2500™ Value Index. The Russell 2500™ Value Index measures the performance of the small to mid-cap value segment of the U.S. equity universe. It includes those Russell 2500 companies with relatively lower price-to-book ratios, lower I/B/E/S forecast medium term (2 year) growth and lower sales per share historical growth (5 years). Benchmark Source: Russell Investments. Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group.

Periods less than one year are not annualized. Performance represents the SMID Value composite.  Performance is shown gross and net of management fees and includes reinvestment of dividends and other income. Gross returns will be reduced by investment advisory fees and other expenses that are incurred in the management of the account. Net of fee performance was calculated using the actual management fees charged. These figures have been rounded to the nearest hundredth.  Past performance is no guarantee of future results. It is not possible to invest directly in an index. Performance disclosures can be found here.

Please see Risk Disclosures for important information.

Industry Weights

As of  

June 30, 2024

Portfolio
Benchmark
Basic Materials
6.4%
4.3%
Consumer Discretionary
13.2%
14.6%
Consumer Staples
8.0%
2.6%
Energy
7.5%
5.8%
Financials
12.1%
19.3%
Health Care
10.0%
7.1%
Industrials
15.9%
22.4%
Real Estate
5.3%
9.4%
Technology
7.5%
8.7%
Telecommunications
3.7%
1.4%
Utilities
10.4%
4.3%

Portfolio Characteristics

As of  

June 30, 2024

Portfolio
Benchmark
Price / Cash Flow
7.2x
9.1x
Price / Earnings (NTM)
10.4x
13.4x
3-5 Year Fwd. EPS Growth
8.9%
12.0%
Weighted Average Market Cap ($ Billion)
$5.6
$7.9
Median Market Cap ($ Billion)
$4.6
$1.3
Number of Stocks
85
1,836
Dollar Turnover
67.9%
Name Turnover
40.9%

Benchmark: Russell 2500™ Value Index. Source: FactSet, Russell Investments (July 2024). Sector weights are run on a single account in the SMID Cap Value composite and, due to rounding, may not add up to 100.0%.

Benchmark: Russell 2500™ Value Index. Source: FactSet, Russell Investments (July 2024). Characteristics are run on a single account in the SMID Cap Value composite and are subject to change. Turnover reflects one-year annualized data.

Meet Our Team

Brett Hawkins, CFA
Portfolio Manager
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Brett Hawkins, CFA
Portfolio Manager and Chief Investment Officer
2001-01-01
with the firm

Brett is a graduate of the University of Richmond, BA and the University of Virginia, Darden School, MBA. Previously, he was employed with Arthur Andersen LLP as a Senior Associate and First Union Securities, Inc, Assistant Vice President, Equity Research. He holds the Chartered Financial Analyst® designation. He is registered as an Investment Adviser Representative. Check the Background of this Investment Professional here.

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bhawkins@tswinvest.com
R. Michael Creager, CFA
Research Analyst
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R. Michael Creager, CFA
Portfolio Manager; Research Analyst
2006-01-01
with the firm

Michael is a graduate of Western Kentucky University, BS and Hofstra University, MBA. Previously, he was employed as a buyside analyst at an insurance holding company and most recently as a sell-side analyst covering the Utilities/Energy Pipeline sector. He holds the Chartered Financial Analyst® designation.

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mcreager@tswinvest.com
Bryan Durand, CFA
Research Analyst
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Bryan Durand, CFA
Portfolio Manager; Research Analyst
2016-01-01
with the firm

Bryan is a graduate of the College of the Holy Cross, BA and the Fuqua School of Business at Duke University, MBA. Most recently, he was a Partner at Private Advisors, LLC. Formerly, he was employed with MFC Global Investment Management as a Senior Research Analyst. Mr. Durand was also previously employed at TSW as an Equity Research Analyst. Bryan is currently registered as an Investment Adviser Representative. Check the background of this Investment Professional here.

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bdurand@tswinvest.com
Scott Miller, CFA
Research Analyst
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Scott Miller, CFA
Research Analyst
2004-01-01
with the firm

Scott is a graduate of Washington and Lee University, BA. He previously worked for Crestar Bank in Richmond as a Corporate Actions Lead Assistant and at Wachovia Securities as an Assistant Vice President, Equity Research. He holds the Chartered Financial Analyst® designation.

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smiller@tswinvest.com
Roger Porter
Research Analyst
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Roger Porter
Portfolio Manager; Research Analyst
2009-01-01
with the firm

Roger is a graduate of the University of Richmond, BA and the University of Richmond Reynolds Graduate School of Business, MBA. Most recently, Roger was a Managing Director, Portfolio Manager and Research Analyst with Atlantic Capital Management, LLC. Prior to that, he was an Associate Vice President, Institutional Research and Sales, with Branch, Cabell & Company.

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rporter@tswinvest.com
Michael Robertson, CFA
Research Analyst
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Michael Robertson, CFA
Research Analyst
2004-01-01
with the firm

Michael is a graduate of University of Richmond, BS. He previously worked as an Intern for Wachovia Securities. He holds the Chartered Financial Analyst® designation.

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mrobertson@tswinvest.com

Related News and Insights

Perspectives
June 2024

Flavors of Value Within Domestic Equity

The need to be explicit in describing flavors of value, particularly in context to the domestic market environment, has changed over the last handful of years given the market backdrop that witnessed one of the largest valuation gaps in history between the most expensive U.S. stocks and its cheaper cohorts.
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Data as of 06/30/2024