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 Small 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 $170 million and $2.8 billion.
FACTS
| Inception Date: | |
| Benchmarks: |
|
| Strategy Assets: | |
| 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 June 30, 2008
|
RHJ
Small
Cap |
Russell 2000 Growth Index |
Russell 2000 Index |
| Number of Holdings |
48 |
1220 |
1982 |
| Price/Forecast* Earnings Ratio |
13.9 |
23.1 |
17.1 |
| Long Term Earnings Growth Forecast* |
20.7% |
21.5% |
16.3% |
| PE/Earnings Growth [PEG] Ratio |
0.67 |
1.07 |
1.05 |
| Dividend Yield |
0.6% |
0.5% |
1.5% |
| Price/Book Ratio |
2.19 |
3.25 |
1.86 |
| Return on Equity [5 Year Average] |
11.6 |
13.6 |
12.0 |
| Weighted Avg Market Cap |
$1.65 B |
$1.21 B |
$1.07 B |
| Weighted Median Market Cap |
$1.30 B |
$1.08 B |
$944 M |
| Equity / Cash |
94% / 6% |
- |
- |
| Portfolio Turnover [1 Year] |
78% |
- |
- |
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.
