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 50-70 mid-cap stocks (stocks with market capitalization between $2 bil and $15 bil) that meet Ballast’s rigorous investment standards
- The portfolio’s performance objective is to outperform the Russell Midcap Indices over a full market cycle (including peaks and troughs), with less risk
- Sector weights will typically range between 50% to 200% of the index weight
- 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 market
BALLAST QUALITY VALUE STRATEGY – MIDCAP
BQV – MIDCAP SNAPSHOT (As Of September 30, 2022)
Source: Ballast Equity, Russell FTSE and FactSet
^ 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 BQV Midcap are taken from the model portfolio
2 The BQV Midcap Strategy is compared to the Russell Midcap Indices as they are widely used benchmarks for mid-capitalization securities
BQV – MIDCAP PERFORMANCE (As Of September 30, 2022)
1 BQV Midcap returns are for the BQV Midcap 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 BQV Midcap Strategy are compared to the historical performance of the Russell Midcap Indices as they are widely used benchmarks for mid-capitalization securities. 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.