RHJ’s strategy elicits the true talents
of our investment team and our investment discipline. The strategy seeks to uncover
and capitalize on smaller, growing, undervalued companies that offer higher return
potential while adhering to disciplined risk controls. The Mid Cap portfolio is
comprised of reasonably priced, less visible companies with unique business concepts
or niche products that we feel are ripe for growth. The bottom-up, fundamental stock
selection process singles out companies with a market capitalization ranging between
$1.5 billion and $14.1 billion.
FACTS
|
Inception Date:
|
|
|
Benchmarks:
|
|
|
Management:
|
|
|
Avg. Composition:
|
|
PHILOSOPHY & PROCESS
Our core competency at RHJ is crafting portfolios that invest in attractively valued
small and mid-size companies. This segment of the market is large but analyst coverage
tends to be sporadic, making it less efficient than the larger capitalization sector.
We strive to recognize opportunity early and to optimize appreciation within a framework
of disciplined risk control.
- Rice Hall James employs a bottom-up, fundamental approach to identify attractively
valued growth companies that demonstrate growth potential and are reasonably priced
— Growth-at-a-Reasonable-Price (GARP)
- Growth stocks are only attractive when bought attractively
- Each portfolio candidate must demonstrate a catalyst for change that can contribute
to sustainable earnings growth
MODEL PORTFOLIO COMPOSITION as of March 31, 2010
|
|
RHJ
Mid
Cap |
Russell Midcap Growth Index |
Russell Midcap Index |
| Number of Holdings |
48 |
489 |
766 |
| Price/Forecast* Earnings Ratio |
16.6 |
16.5 |
16.4 |
| Long Term Earnings Growth Forecast* |
16.5 |
14.6 |
11.1 |
| PE/Earnings Growth [PEG] Ratio |
1.0 |
1.1 |
1.5 |
| Dividend Yield |
0.7% |
1.0% |
1.5% |
| Price/Book Ratio |
2.5 |
3.3 |
2.1 |
| Return on Equity [5 Year Average] |
16.1 |
20.1 |
15.2 |
| Weighted Avg Market Cap |
$6.27 B |
$7.08 B |
$6.81 B |
| Weighted Median Market Cap |
$4.76 B |
$6.29 B |
$6.24 B |
| Equity / Cash |
97% / 3% |
- |
- |
| Portfolio Turnover [1 Year] |
52% |
- |
- |
Source: Rice Hall James & Associates & Independent Consulting Organizations
HIGHLIGHTS
- is vital to our investment process
– enabling us to independently evaluate and verify information from external sources,
as well as judge the appropriateness of stocks for our client’s portfolio.
- All and are encouraged
to perform research and select stocks from across all market sectors.
- Our are a
significant advantage -- communication flows easily among team members and other
departments resulting in timely investment decisions.
- Research involves traditional
coupled with modern, computerized information systems.
