Portfolio Manager since 2004
Small Cap Value
-
YTD Return
7.52%as of
Return is shown net of fees. See performance below for additional disclosure.
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Total Assets ($MM)
$249.6 MMas of
Profile
The Cambiar Small Cap Value portfolio is a diversified strategy that invests primarily in small-cap companies domiciled in the U.S. This equal-weight portfolio will hold between 45-55 stocks with a starting universe that includes any company with a market cap between $500 million to $5 billion.
Key Facts
- Inception Date
- 11/30/2004
- Minimum
- $5 MM
Portfolio Managers
-
-
Portfolio Manager since 2018
Performance
| MTD | YTD | 1 YR | 3 YR | 5 YR | 10 YR | Since Inception | |
|---|---|---|---|---|---|---|---|
| Small Cap Value (g) | 1.47 | -0.99 | -0.48 | 5.62 | 3.45 | 14.69 | 9.52 |
| Small Cap Value (n) | 1.36 | -1.86 | -1.41 | 4.68 | 2.52 | 13.63 | 8.44 |
| R2000V | 1.61 | -0.88 | -1.83 | 10.08 | 6.71 | 12.50 | 7.05 |
| QTR | YTD | 1 YR | 3 YR | 5 YR | 10 YR | Since Inception | |
|---|---|---|---|---|---|---|---|
| Small Cap Value (g) | 4.02 | 8.24 | 11.90 | 10.82 | 6.91 | 11.29 | 10.35 |
| Small Cap Value (n) | 3.77 | 7.52 | 10.93 | 9.85 | 5.96 | 10.27 | 9.27 |
| R2000V | 1.60 | 7.14 | 9.33 | 16.12 | 9.91 | 9.52 | 7.75 |
Inception Date: 11.30.2004. The performance information depicted above represents Cambiar’s Small Cap Value Composite (Institutional). Returns are presented gross (g) and net (n) of management fees. Gross and net returns are reduced by transaction expenses. Net returns are also reduced by actual investment advisory fees and other expenses that may be incurred in the management of the account. Prior to 2014, the gross returns reflect accounts with both gross and “pure” gross performance. From 2014 to present, the composite contains accounts with only gross performance. “Pure” gross returns, applicable to SMA portfolios, are not reduced by any expenses, which includes transaction costs, and are provided as supplemental information. Brokerage firms which sponsor SMA fee programs apply bundled fees which may include transactions costs, investment management, portfolio monitoring, consulting services, and in some cases, custodial service fees. Net returns for SMA portfolios are calculated by subtracting actual SMA fees reported by the SMA sponsor. Net of fees performance reflects a blended fee schedule of all accounts within the Small Cap Value Composite (Institutional). Cambiar clients and mutual fund investors may incur actual fee rates that are greater or less than the rate reflected in this performance summary. Results are reported in U.S. dollars.
Performance results for the Small Cap Value Composite (Institutional) are evaluated against the Russell 2000® Value Index. The Russell 2000® Value Index is a float-adjusted, market capitalization weighted index comprised of firms in the Russell 2000® Index that experience lower price-to-book ratios and lower forecasted growth values. The Russell 2000® Index is a float-adjusted, market capitalization weighted index that measures the performance of the 2,000 smallest companies in the Russell 3000® Index, which consists of 3,000 of the largest U.S. equities. The index assumes no management, custody, transaction or other expenses. The Russell 2000 Value Index is a broadly based index that reflects the overall market performance and Cambiar’s returns may not be correlated to the index. The index is unmanaged and one cannot invest directly in an index. Cambiar’s performance and the performance of the Russell 2000 Value Index include the reinvestment of all income. Performance is preliminary, please contact us for finalized figures. As with any investments, there are risks to be considered. Past performance is no indication of future results.
View Cambiar’s GIPS compliant presentations here.
Composition
Top 10 holdings
as of 9/30/2018
| % Weight | ||
|---|---|---|
|
01
|
Callon Petroleum | 2.3 |
|
02
|
Forward Air | 2.3 |
|
03
|
Idacorp | 2.3 |
|
04
|
Molina Healthcare | 2.3 |
|
05
|
Bruker | 2.3 |
|
06
|
Herman Miller | 2.2 |
|
07
|
Jagged Peak Energy | 2.2 |
|
08
|
Yelp | 2.2 |
|
09
|
American Homes 4 Rent | 2.2 |
|
10
|
Natus Medical | 2.2 |
Sector Weights (%)
as of 9/30/2018
Attributes
as of 9/30/2018
| Cambiar | R2000V | |
|---|---|---|
| Price/Earnings F1Y | 15.4 | 14.4 |
| Price/Book | 2.0 | 1.5 |
| Debt/Equity | 0.9 | 1.0 |
| EPS Growth LT (%) | 13.6 | 11.2 |
| Market Cap - Wtd. Avg. ($B) | 3.2 | 2.1 |
| Market Cap - Median ($B) | 2.9 | 0.8 |
Active Share
as of 9/30/2018
RISK STATISTICS
as of 9/30/2018
| Cambiar | R2000V | |
|---|---|---|
| Alpha | -1.8 | 0.0 |
| Beta | 0.9 | 1.0 |
| R-Squared | 77.1 | 100.0 |
| Sharpe Ratio | 0.6 | 0.8 |
| Standard Deviation | 11.9 | 11.8 |
Disclosures
Data is provided for a representative account as of September 30, 2018. Portfolio holdings, characteristics, country breakdown, and sector weightings change over time and may differ between clients based upon their investment objectives, financial situations and risk tolerances. Cambiar makes no warranty, either express or implied, that the weightings shown will be used to manage your account. The securities presented do not represent all of the securities purchased, sold, or recommended by Cambiar and the reader should not assume that investments in the securities identified were or will be profitable. The information provided on the page should not be considered a recommendation to buy or a solicitation to purchase or sell any particular security. There can be no assurance that an investor will earn a profit or not lose money. There can be no assurance that the portfolio will continue to hold the same position in companies described herein, and the portfolio may change any portfolio position at any time. As with any investments, there are risks to be considered. Past performance is no indication of future results.
The one year forecast is included for illustrative purposes and accordingly, no assumptions or comparisons should be made based upon these ratios. Risk statistics are based off a five-year time frame. Portfolio characteristics are based upon third-party sources that are deemed to be reliable, however, Cambiar does not guarantee its accuracy or completeness.
Total Assets represents assets under management for the strategy and are subject to change. Minimums represent intended/proposed minimums for institutional clients and are subject to change.
The Russell 2000® Value Index is a trademark/service mark of the Frank Russell Company. Russell® is a trademark of the Frank Russell Company.
Definitions:
Active Share – a holdings-based measure of active management representing the percentage of securities in a portfolio that differ from those in the benchmark index.
Price/Earnings (F1Y) – a calculation that divides the current share price by the estimates of earnings in the next four quarters.
Debt/Equity – Long Term is a calculation that takes interest-bearing, long-term debt divided by shareholder equity.
EPS Growth – Long Term is a calculation that takes the company’s estimated profits for five years divided by the outstanding shares.
Alpha – a measure of risk-adjusted performance.
Beta – a measure of risk in relation to the market or benchmark.
R-Squared – a measure of how closely a portfolio’s performance correlates with the performance of a benchmark index
Sharpe Ratio – a direct measure of reward-to-risk and is calculated by subtracting the risk-free rate from the rate of return for a portfolio and dividing the result by the standard deviation.
Standard Deviation – a statistical measure of historical volatility; a measure of the extent to which numbers are spread around their average.
Commentary
Domestic Markets – 3Q18 Review
U.S. stocks continued their resilient march higher in the third quarter, with equity averages hovering around their respective high water marks. The S&P 500 Index gained 7.7% in the quarter, while the small-cap (as measured by the Russell 2000 Index) returned 3.6%. After lagging in the second quarter, large-cap equities led the way in 3Q. On a style basis, growth stocks once again held the upper hand vs. their value counterparts – a trend that has been in place since the end of 2016.
In our second quarter commentary, Cambiar raised the potential for a reduction in risk appetites – given ongoing trade/protectionist measures. Our concern was that tariffs could neutralize some of the stimulative effects such as tax reform and general economic momentum taking place in the U.S. Clearly, such a cautious posture was not necessary, as any trade fears were more than offset by robust economic growth metrics. The U.S. economy remains the best house on the global block, and even appears to be gaining momentum. While the U.S. economy is clearly running on all cylinders, stocks (and bonds) were also direct beneficiaries of a ‘capital concentration’ trade that took place in the quarter – as a tightening Federal Reserve and strong dollar led to capital flight out of weakening currency economies (e.g., Emerging Markets).
While the underlying strength in the U.S. equity markets is likely to continue, Cambiar believes that some caution is warranted. For example, the pressure on EM currencies and economies is likely to have a negative earnings impact on U.S. multinationals. And while progress on trade has been made with our North America partners, the U.S. and China have yet to meet at the bargaining table. Upcoming mid-term elections may also bring increased volatility to the markets. Lastly, a tight labor market and asset price inflation is likely to result in additional tightening responses by the Federal Reserve. In isolation, it is unlikely that any one of these developments impacts the trajectory for stocks. But taken in combination, these events (i.e., risks) appear to be underappreciated by investors.
Certain information contained in this communication constitutes “forward-looking statements”, which are based on Cambiar’s beliefs, as well as certain assumptions concerning future events, using information currently available to Cambiar. Due to market risk and uncertainties, actual events, results or performance may differ materially from that reflected or contemplated in such forward-looking statements. The information provided is not intended to be, and should not be construed as, investment, legal or tax advice. Nothing contained herein should be construed as a recommendation or endorsement to buy or sell any security, investment or portfolio allocation. Securities highlighted or discussed have been selected to illustrate Cambiar’s investment approach and/or market outlook. The portfolios are actively managed and securities discussed may or may not be held in client portfolios at any given time, do not represent all of the securities purchased, sold, or recommended by Cambiar, and the reader should not assume that investments in the securities identified and discussed were or will be profitable.
Any characteristics included are for illustrative purposes and accordingly, no assumptions or comparisons should be made based upon these ratios. Statistics/charts are based upon third-party sources that are deemed reliable; however, Cambiar does not guarantee its accuracy or completeness. As with any investments, there are risks to be considered. Past performance is no indication of future results. All material is provided for informational purposes only and there is no guarantee that any opinions expressed herein will be valid beyond the date of this communication.