Investment Strategies
Small Cap Quality Select Portfolio (Institutional)
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Small Cap Quality Select Fact Sheet

Small Cap Quality Select Portfolio (Institutional)

Managers

Todd Beiley, CFA Head of Research, Portfolio Manager and Senior Research Analyst
    Introduction
    Highlights
    Sector Diversification
    Portfolio Characteristics
    Historical Returns
    Performance Statistics

The KAR Small Cap Quality Select Portfolio is a concentrated "best ideas" 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 Equity

Primary Index: Russell 2000 Index

Inception Date: November 1, 2006

Holdings Range: 6-12

Sector Constraint: No sector constraints

Portfolio Turnover: Typically <100%

Sector Diversification

As of September 30, 2024
KAR Small Cap Quality Select
Russell 2000® Index

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. Data is obtained by FactSet Research Systems and is assumed to be reliable.

Portfolio Characteristics

As of September 30, 2024

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.

This material is deemed supplemental and complements the performance and disclosure at the end of this presentation. Data is obtained from FactSet Research Systems and BNY Mellon and is assumed to be reliable. Other principal consultant firms may use different algorithms to calculate selected statistics. Estimates are based on certain assumptions and historical information. Past performance is no guarantee of future results. Returns could be reduced, or losses incurred, due to currency fluctuations.
Concept

KAR Small
Cap Quality
Select

Russell 2000®
Index
Quality
Return on Equity-Past 5 Years 30.9% 9.0%
Debt/EBITDA 1.3x 2.4x
Earnings Variability-Past 10 Years 31.2% 83.1%
Growth
Earnings Per Share Growth-Past 5 Years 23.7% 12.3%
Value
P/E Ratio-Trailing 12 Months 16.9x 49.4x
Market Characteristics
$ Weighted Average Market Cap $4.4 B $3.6 B

Historical Returns (Institutional)

*November 1, 2006.

†All periods less than one year are total returns and are not annualized. Returns are final.

§Net of all fees and expenses. Assumes a 1.25% annual fee. Fees presented on the Disclosure page could vary from the assumed fee in the net-of-fee calculation, as actual fees paid by a particular client account differ depending on a variety of factors including, but not limited to, business unit and size of mandate. The fee used on the on the Disclosure page of the KAR Small Quality Select fact sheet utilizes an assumed maximum fee across the firm’s business units, which is further detailed on that page.

||Performance calculations are for the two months ended December 31, 2006.

This material is deemed supplemental and complements the performance and disclosure on the Disclosure page of the KAR Small Quality Select fact sheet. For further details on the composite, please see the Disclosure page of the KAR Small Quality Select fact sheet. Past performance is no guarantee of future results. Returns could be reduced, or losses incurred, due to currency fluctuations.
Period KAR Small Cap
Quality Select
(gross)		 KAR Small Cap
Quality Select
(net)§		 Russell 2000®
Index		 MSCI®
ACWI Small
Cap Index
Annualized Returns (%)† As of September 30, 2024
3rd Quarter14.74 14.40 9.27 8.80
Year to Date9.72 8.71 11.17 11.29
1 Year58.95 57.04 26.76 24.62
3 Year13.43 12.03 1.84 2.60
5 Year14.81 13.39 9.39 9.40
7 Year15.95 14.52 7.36 7.04
10 Year16.85 15.41 8.78 7.81
Inception*15.57 14.14 7.60 7.20
Annual Returns (%)
2023108.50 106.05 16.93 16.84
2022(33.74)(34.60)(20.44)(18.67)
2021(0.62)(1.86)14.82 16.09
202031.76 30.15 19.96 16.33
20193.75 2.46 25.52 24.65
201825.23 23.70 (11.01)(14.39)
201765.76 63.78 14.65 23.81
20169.38 8.03 21.31 11.59
2015(15.85)(16.92)(4.41)(1.04)
20147.34 6.01 4.89 1.78
201350.52 48.71 38.82 28.66
201223.44 21.93 16.35 18.06
20115.67 4.36 (4.18)(11.30)
201032.62 31.00 26.85 26.28
200968.54 66.53 27.17 50.67
2008(39.41)(40.20)(33.79)(43.68)
200715.46 14.04 (1.57)6.83
2006||3.03 2.82 2.97 6.26

Performance Statistics (Institutional)

Inception*  to September 30, 2024

*November 1, 2006.

This material is deemed supplemental and complements the performance and disclosure on the Disclosure page of the KAR Small Quality Select fact sheet. For further details on the composite, please see the Disclosure page of the KAR Small Quality Select fact sheet. Past performance is no guarantee of future results. Returns could be reduced, or losses incurred, due to currency fluctuations.
Concept

KAR Small
Cap Quality
Select (gross)

KAR Small
Cap Quality
Select (net)

Russell 2000®
Index
Annualized Standard Deviation 26.00 26.00 20.56
Alpha 10.14 8.78 0.00
Beta 0.85 0.85 1.00
Sharpe Ratio 0.55 0.49 0.30
R-Squared 45.32 45.32 100.00