Portfolios invested in this strategy will typically have the following traits:
- Strategy co-managed by Randy Hughes and Jeffrey Kautz, CFA
- Long-only portfolio of 30-50 stocks constructed from Ballast Equity’s best small- and mid-cap ideas
- The portfolio’s performance objective is to outperform the Russell 2500 Indices over a full market cycle (including peaks and troughs), with less risk
- Sector weights may vary widely from the index depending on where we are finding the most opportunity
- Remain fully invested to offset quality bias and more fully participate in up markets
- Expect lower turnover and lower capital gains taxes due to longer holding periods
- Portfolio expected to experience lower volatility and lower drawdown in down markets
^Sector classifications are generally determined by referencing the Global Industry Classification Standard (GICS®) and exclude cash. GICS was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC (S&P). GICS is a service mark of MSCI and S&P. 1 Sector weights for the Ballast Select Value are taken from the model portfolio 2 The Ballast Select Value Strategy is compared to the Russell 2500 Indices as they are widely used benchmarks for SMID capitalization securities.
1. Ballast Select Value returns are for the Select Value Composite. Net returns are calculated assuming the maximum advisory fee of 100bps is applied. All dividends are assumed to be reinvested. Ballast Equity claims compliance with the Global Investment Performance Standards (GIPS). For more details on composite construction refer to Appendix B. 2 The returns of the Ballast Select Value Strategy are compared to the historical performance of the Russell 2500 Indices as they are widely used benchmarks for SMID capitalization securities.
2. An investment with Ballast Equity Management (BEM) should not be construed as an investment in a program that seeks to replicate, or correlate with, this index. Market conditions vary between the BEM products and these indices. Furthermore, these indices do not include any transaction costs, management fees, and other expenses, as do the BEM Products. Lastly, BEM may invest in strategies and positions that are not included in these indices.