The KAR Small-Mid Cap Growth Portfolio is a domestic small and mid-cap portfolio that invests in high-quality growth 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-Mid Cap Equity
Primary Index: Russell 2500 Growth Index
Inception Date: August 1, 2018
Holdings Range: 20-35
Sector Constraint: Seek broad diversification, but no sector restraints
Non-U.S. Holdings: Up to 20%
Portfolio Turnover: 25% – 35%
Top Five Holdings
Company |
Percent of equity (%) |
---|---|
Fair Isaac | 6.8 |
Ryan Specialty Holdings | 6.2 |
HEICO | 5.7 |
Copperleaf Technologies | 5.6 |
West Pharmaceutical Services | 4.7 |
Total | 29.1 |
Sector Diversification
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
Concept | KAR Small-Mid |
Russell 2500TM |
---|---|---|
Quality | ||
Return on Equity-Past 5 Years | 18.2% | 15.4% |
Debt/EBITDA | 1.4x | 1.5x |
Earnings Variability-Past 10 Years | 46.6% | 69.8% |
Growth | ||
Earnings Per Share Growth-Past 10 Years | 12.9% | 14.7% |
Capital Generation--[ROE x (1-Payout)] | 15.5% | 13.5% |
Value | ||
P/E Ratio-Trailing 12 Months | 66.4x | 48.7x |
Free Cash Flow Yield* | 1.9% | 2.4% |
Market Characteristics | ||
$ Weighted Average Market Cap | $14.5 B | $8.4 B |
Largest Market Cap | $38.9 B | $47.4 B |
Historical Returns (Institutional)
Period | KAR Small-Mid Cap Growth (gross) |
KAR Small-Mid Cap Growth (net)‡ |
Russell 2500TM Growth Index |
---|---|---|---|
Annualized Returns (%)† As of June 30, 2024 | |||
2nd Quarter | (1.52) | (1.73) | (4.22) |
Year to Date | 3.59 | 3.15 | 3.93 |
1 Year | 9.77 | 8.84 | 9.02 |
3 Year | (0.63) | (1.47) | (4.11) |
5 Year | 11.08 | 10.15 | 7.58 |
Inception* | 12.73 | 11.78 | 7.11 |
Annual Returns (%) | |||
2023 | 20.07 | 19.06 | 18.93 |
2022 | (21.94) | (22.62) | (26.21) |
2021 | 6.58 | 5.68 | 5.04 |
2020 | 48.40 | 47.18 | 40.47 |
2019 | 46.11 | 44.91 | 32.65 |
2018|| | (9.44) | (9.77) | (15.93) |
Performance Statistics (Institutional)
Concept | KAR Small-Mid |
KAR Small-Mid |
Russell 2500TM |
---|---|---|---|
Alpha | 6.13 | 5.23 | 0.00 |
Sharpe Ratio | 0.52 | 0.47 | 0.21 |
Information Ratio | 0.61 | 0.50 | N/A |
Beta | 0.80 | 0.80 | 1.00 |
Downside Capture | 73.21 | 74.59 | 100.00 |
Tracking Error | 9.27 | 9.27 | N/A |