Investment Strategies
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%
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.
KAR Small |
Russell 2000® |
|
|---|---|---|
| Quality | ||
| Return on Equity-Past 5 Years | 23.2% | 9.6% |
| Debt/EBITDA | 0.8x | 2.3x |
| Earnings Variability-Past 10 Years | 21.2% | 84.8% |
| Growth | ||
| Earnings Per Share Growth-Past 5 Years | 5.5% | 15.8% |
| Value | ||
| P/E Ratio-Trailing 12 Months | 11.5x | 29.1x |
| Market Characteristics | ||
| $ Weighted Average Market Cap | $3.3 B | $2.9 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.
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.
Annualized Returns (%)†
As of September 30, 2023Annual Returns (%)
KAR Small Cap
Quality Select
(gross)
KAR Small Cap
Quality Select
(net)§
Russell 2000®
Index
MSCI®
ACWI Small
Cap Index
*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.
KAR Small |
KAR Small |
Russell 2000® |
|
|---|---|---|---|
| Annualized Standard Deviation | 24.50 | 24.50 | 20.47 |
| Alpha | 9.07 | 7.73 | 0.00 |
| Beta | 0.80 | 0.80 | 1.00 |
| Sharpe Ratio | 0.50 | 0.44 | 0.27 |
| R-Squared | 44.96 | 44.96 | 100.00 |
*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.