SMID Cap Strategy*

  • Overview

    Overview

    We focus on high-quality business models and proven management teams for the companies we include in our portfolios. Our focus on quality businesses — in addition to strict adherence to our valuation discipline and careful portfolio construction — helps us achieve superior risk-adjusted returns and long-term capital growth for investors.

    Investment Process

    By utilizing an in-depth, bottom-up qualitative research process, the Eagle SMID Cap Strategy team strives to build a portfolio of high-quality small and mid cap companies that are reasonably priced.
     
    The team constructs portfolios that consist of stable, but growing, companies with the following attributes:
    • management teams with a proven track record of successfully executing their business strategies
    • defensible business models
    • strong cash-flow generation
    • high returns on capital
    • strong balance sheets
    • attractive valuations.
     
    * Formerly known as the Eagle Smaller Company Strategy
     

    Portfolio Characteristics

    Typical Market Capitalization

    $500 million to $7 billion

    Benchmark

    Russell 2500® Index

    Account Minimum

    $100,000

    Typical Turnover

    Typically less than 50%

    Typical Number of Holdings

    60 to 90

    Index Definition
    Indices are unmanaged, and one cannot invest directly in an index.

    The Russell 2500® Index is made up of the 2,500 smallest companies in the Russell 3000® Index, representing approximately 17 percent of the Russell 3000 total market capitalization. The Index figures do not reflect any deduction for fees, expenses, trading costs or taxes.

    Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and / or Russell ratings or underlying data and no party may rely on any Russell Indexes and / or Russell ratings and / or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication.

  • Investment Team

    SMID Cap Strategy Investment Team

    Charles Schwartz

    Charles Schwartz, CFA

    Portfolio co-Manager

    27 Years of Industry Experience

    6 Years With Eagle Asset Management

    Betsy Pecor

    Betsy Pecor, CFA

    Portfolio co-Manager

    21 Years of Industry Experience

    6 Years With Eagle Asset Management

    Matthew McGeary

    Matthew McGeary, CFA

    Portfolio co-Manager

    19 Years Of Industry Experience

    6 Years With Eagle Asset Management

    Matt Spitznagle

    Matthew Spitznagle, CFA

    Senior Research Analyst

    22 Years of Industry Experience

    6 Years With Eagle Asset Management

    Jason Wulff

    Jason Wulff, CFA

    Research Analyst

    17 Years Of Industry Experience

    3 Years With Eagle Asset Management

    Ed Rick

    Ed Rick, CFA

    Head of Client Portfolio Management

    24 Years Of Industry Experience

    4 Years With Eagle Asset Management

    * Formerly known as the Eagle Smaller Company Strategy

  • Performance

    Performance1 as of September 30, 2018

        Current
    Quarter
    Year
    to Date
    One
    Year
    Three
    Year
    Five
    Year
    10
    Year
    Since Inception
    (July 1, 1997)

    Eagle SMID Cap Strategy*

    Gross

    6.23%

    11.63%

    18.53%

    18.64%

    11.15%

    10.90%

    10.92%

    Eagle SMID Cap Strategy*

    Net

    5.85%

    10.42%

    16.81%

    16.91%

    9.52%

    9.27%

    9.08%

    Russell 2500® Index

     

    4.69%

    10.40%

    16.19%

    16.14%

    11.37%

    12.03%

    9.63%

    * Formerly known as the Eagle Smaller Company Strategy


    Compounded, Annualized Rates of Return Net of Fees as of September 30, 2018

    Year Percentage $100,000 Compounded

    1

    16.81%

    $116,809

    3

    16.91%

    $159,793

    5

    9.52%

    $157,554

    10

    9.27%

    $242,613

    Since Inception (July 1, 1997)

    9.08%

    $634,584


    Risk Information
    The risks associated with investing in small- and mid-sized companies are based on the premise that relatively small companies will increase their earnings and grow into larger, more valuable companies. However, as with all equity investing, there is the risk that a company will not achieve its expected earnings results, or that an unexpected change in the market or within the company will occur, both of which may adversely affect investment results. Historically, small- and mid-cap stocks have experienced greater volatility than other equity asset classes, and they may be less liquid than large-cap stocks. Thus, relative to larger, more liquid stocks, investing in small- and mid-cap stocks involves potentially greater volatility and risk. The biggest risk of equity investing is that returns can fluctuate and investors can lose money.

    Not every investment opportunity will meet all of the stringent investment criteria mentioned to the same degree. Trade-offs must be made, which is where experience and judgment play a key role. Accounts are invested at the discretion of the portfolio manager and may take up to 60 days to become fully invested.

    Disclosures
    (1)The definition of the accounts included in the Eagle SMID Cap Strategy Composite is as follows:
    The Eagle SMID Cap Strategy Composite includes retail accounts that seek long-term appreciation through equity ownership of small-/mid-cap companies at a discount to what it perceives as fair market value.

    Past performance does not guarantee or indicate future results. No inference should be drawn by present or prospective clients that managed accounts will achieve similar performance in the future. Investment in a portfolio, investment manager or security should not be based on past performance alone. Because accounts are individually managed, returns for separate accounts may be higher or lower than the average performance stated. Individual portfolio/performance results may vary due to market conditions, trading costs and certain other factors, which may be unique to each account. There is no guarantee that these investment strategies will work under all market conditions, and each investor should evaluate their ability to invest for the long term, especially during periods of downturn in the market. Investing in equities may result in a loss of capital. Investing involves risk and you may incur a profit or a loss. Investment returns and principal value will fluctuate so that an investor’s portfolio, when redeemed, may be worth more or less than their original cost. Diversification does not ensure a profit or guarantee against a loss.

    The calculation of the performance data includes reinvestment of all income and gains and is depicted on a time-weighted and size-weighted average for the entire period. Calculations include reinvestment of all income and gains. Gross performance presented is "pure gross" and is shown before deduction of any fees. Net returns have been reduced by the entire bundled/wrap fee. The bundled/wrap fee will typically include trading, investment management, portfolio monitoring and other administrative fees charged by the sponsor. Eagle's fees are set forth in Eagle's ADV, Part II. Over a period of five years, an advisory fee of 1% could reduce the total value of a client's portfolio by 5% or more.

    Eagle Asset Management, Inc. ("Eagle") claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS Standards. Eagle has been independently verified for the periods from January 1, 1982 to December 31, 2017. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The verification and performance examination reports are available upon request.

    Eagle Asset Management, Inc. is an investment adviser registered with the Securities and Exchange Commission and is engaged in providing discretionary management services to client accounts. The benchmark is the Russell 2500® Index, which has been derived from published sources and has not been examined by independent accountants. 

    Currency: all monetary amounts displayed on this website are in U.S. dollars.

    To obtain a compliant presentation and/or the firm's list of composite descriptions, please contact Eagle Asset Management at 1.800.237.3101.

    Index Definition
    Indices are unmanaged, and one cannot invest directly in an index.

    The Russell 2500® Index is made up of the 2,500 smallest companies in the Russell 3000® Index, representing approximately 17 percent of the Russell 3000 total market capitalization. The Index figures do not reflect any deduction for fees, expenses, trading costs or taxes.

    Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and / or Russell ratings or underlying data and no party may rely on any Russell Indexes and / or Russell ratings and / or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication.

  • Literature

    Documents available for download


    * Formerly known as the Eagle Smaller Company Strategy


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