SMID Cap Value
Our SMID cap value equity portfolio is comprised of approximately 50 to 60 high-quality, companies that are trading at a discount to their fair value. These portfolio holdings are drawn from our Small Cap Value and Mid Cap Value strategies, which allows us to seek the best values and ideas across the small to middle market capitalization spectrum. We rely on a comprehensive process to seek out companies that:
- Have positive free cash flow
- Exhibit above-average financial strength
- Return capital to shareholders
- Are attractively valued
- Have large market shares in their industries
View detailed SMID Cap Value portfolio characteristics (PDF)
Investment Process
Beginning with a universe of 2,800 small and mid-size companies based on market capitalization, our SMID Cap Investment Team performs both thorough quantitative analysis and rigorous fundamental qualitative analysis that includes
- Screening through a proprietary valuation model
- Meetings with management
- Conversations with employees, customers, suppliers, competitors and consultants
Sell Discipline
Our sell discipline is as important as our buying strategy. The portfolio undergoes continuous monitoring and risk management evaluation by the SMID cap investment team. We consider for full or partial sale any stock that has
- Met our sell target
- Fundamentally changed
- Shown strong price appreciation
Securities may also be sold to fund better opportunities. This ongoing process assures that the portfolio stays true to our market capitalization while minimizing risk for our clients.
To learn more about how our team constructs portfolios and makes investment decisions, please read an interview with our U.S. value equity management team.
The information contained herein is for informational purposes only. It does not constitute an offer to sell nor a solicitation of an offer to buy an interest in any Mesirow Financial investment vehicle(s). Any offer can only be made through the appropriate Offering Memorandum which contains important information concerning risk factors and other material aspects of the investment and should be read carefully before an investment decision is made. A complete list of composites can be made available upon request. Information is provided in U.S. dollar denominations.
