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Small Cap Focus Portfolio

The KAR Small Cap Focus Portfolio is a domestic small-cap focus portfolio that invests in high-quality companies purchased at attractive valuations. It is a high-conviction strategy that utilizes a bottom-up fundamental research approach to identify what we believe are the best companies at the most attractive prices within the high-quality universe.

Highlights
Asset Class
Small Cap
Primary Index
Russell 2000® Index
Inception Date
April 1, 2014
Holdings Range
15-35
Sector Constraint
Seek broad diversification, but no sector constraints
Non-U.S. Holdings
Up to 20%
Portfolio Turnover
25% - 45%

Top Five Holdings

As of June 30, 2026
Company Percent of equity (%)
U.S. Dollar 10.2
Goosehead Insurance 9.5
Kinsale Capital Group 9.4
Enerpac Tool Group 8.9
Alliance Laundry Holdings 8.9
Total 46.9

Source: SS&C GWP™ and FactSet Research Systems. Holdings are subject to change. Holdings and weightings are based on a representative portfolio. Individual Investors’ holdings may differ slightly. Numbers may not always add up due to rounding.

Sector Diversification

As of June 30, 2026
KAR Small Cap Focus
Russell 2000® Index
Communication Services
Consumer Discretionary
Consumer Staples
Energy
Financials
Health Care
Industrials
Information Technology
Materials
Real Estate
Utilities
Cash
0%
10%
20%
30%
40%
50%
0%
25%
50%

Source: SS&C GWP™ and FactSet Research Systems. Holdings are subject to change. Holdings and weightings are based on a representative portfolio. Individual Investors’ holdings may differ slightly. The sector information represented above is based on GICS sector classifications.

Portfolio Characteristics

As of June 30, 2026
KAR Small Cap Focus Russell 2000® Index
Quality
Return on Equity-Past 5 Years 25.4% 6.6%
Debt/EBITDA* 1.6x 2.4x
Earnings Variability-Past 10 Years 46.5% 83.2%
Growth
Earnings Per Share Growth-Past 10 Years 17.1% 9.2%
Value
P/E Ratio-Trailing 12 Months 24.4x 66.8x
Market Characteristics
$ Weighted Average Market Cap-3 Year Avg $5.5 B $4.0 B

*KAR utilizes the interquartile method when calculating Debt/EBITDA. The interquartile method excludes outliers from an aggregate statistic such as weighted average. The interquartile method does not assume that data from the top or bottom of the distribution are outliers—only the extreme ends are excluded—and that it can be applied consistently as a quantitative method for most fundamental characteristics. Debt/EBITDA utilizes net debt for the calculation.

Source: SS&C GWP™ and BNY Mellon. This material is deemed supplemental and complements the performance and disclosure on the Disclosure page of the KAR Small Cap Focus fact sheet. Other principal consultant firms may use different algorithms to calculate selected statistics. Estimates are based on certain assumptions and historical information. Returns may be affected by currency fluctuations. Past performance is no guarantee of future results.