Portfolio Manager since 2014
SMID Value
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YTD Return
Return is shown net of fees. See performance below for additional disclosure.
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Total Assets
Profile
The Cambiar SMID Value portfolio is a diversified strategy that invests primarily in small and midcap companies domiciled in the U.S. This equal-weight portfolio will hold between 35-45 stocks with a starting universe that includes any company with a market cap between $2-$12 billion.
Key Facts
- Inception Date
- 7/31/2010
- Minimum
- $5 MM
Portfolio Managers
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Portfolio Manager since 2010
Performance
Inception Date: 7.31.2010. The performance information depicted above represents Cambiar’s SMID Value Composite. 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. The gross returns reflect accounts with both gross and “pure” gross performance. “Pure” gross returns, applicable to separately managed accounts that are part of broker-sponsored or wrap programs that bundle fees including commissions (SMA), are not reduced by any expenses, which includes transaction costs, and are provided as supplemental information. Net returns for SMAs 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 SMID Value Composite. SMAs incur bundled fees that are charged by brokerage firms which sponsor SMA fee programs and that may include transaction costs, investment management, portfolio monitoring, consulting services, and in some cases, custodial service fees. 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 SMID Value Composite are evaluated against the Russell 2500™ Value Index. The Russell 2500 Value Index is a float-adjusted, market capitalization-weighted index comprised of firms in the Russell 2500™ Index that experience lower price-to-book ratios and lower forecasted growth values. The Russell 2500 Index is a float-adjusted, market capitalization-weighted index that measures the performance of the 2,500 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 2500 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 2500 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
Sector Weights (%)
Attributes
RISK STATISTICS
Active Share
Disclosures
Data is provided for a representative account as of September 30, 2019. 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 2500™ 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 – 3Q19 Review
U.S. equities continued their march higher in the third quarter, with the S&P 500 Index posting a return of 1.7%. The 3Q advance results in a year-to-date gain of 20.6% – the strongest cumulative three-quarter return for the S&P 500 since 1997. This is not to suggest that there have not been pullbacks along the way; yet as has been the case for much of the current bull market, weakness in stocks has generally been a good buying opportunity for investors thus far in 2019. As we approach the fourth quarter, we believe an uptick in volatility is likely to be a safe forecast.
Extending the timeframe a bit, the S&P has been fairly rangebound over the past two years – a function of market fatigue, lack of catalysts, and ongoing trade/economic and political infighting. The push/pull on topics such as U.S.-China trade talks, monetary policy, yield curve inversion, and political posturing continued in the quarter – capped off by an announced impeachment inquiry. The market has largely managed to shrug off many of these uncertainties, although the lack of clarity (particularly on trade) is clearly having an impact on corporate spend projections.
In a welcome break from trend for price-sensitive managers such as Cambiar, large-cap value stocks kept pace with their growth counterparts for the quarter, while solidly outperforming in the small-cap asset class. The positive sentiment towards value coincided with the September recovery in bond yields – which incurred their own roller coaster of sorts during the quarter. Will the rotation to value have legs, or was this move nothing more than a brief pause for growth stocks? Cambiar is not inclined to make a market call on this front. What we would highlight is the intersection of reasonable valuations and attractive fundamentals in which many of our companies reside. We acknowledge that overcapacity in a number of traditional value industries is a very real concept and that low valuations in and of itself does not mean that stocks can not go lower. That said, we remain of the belief that a rigorous underwriting process that marries quality and value-creating attributes with appropriate attachment points can lead to excess returns over a market cycle.
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.