Investment Strategies
The KAR Small-Mid Cap Sustainable 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%
Company |
Percent of equity (%) |
|---|---|
| West Pharmaceutical Services | 6.0 |
| Ryan Specialty Holdings | 5.8 |
| Fair Isaac | 5.5 |
| Bentley Systems | 4.9 |
| HEICO | 4.6 |
| Total | 26.9 |
This report is based on the assumptions and analysis made and believed to be reasonable by Advisor. However, no assurance can be given that Advisor’s opinions or expectations will be correct. This report is intended for informational purposes only and should be not considered a recommendation or solicitation to purchase securities. Holdings are subject to change. Holdings and weightings are based on a representative portfolio. Individual Investors’ holdings may differ slightly. Data is obtained by FactSet Research Systems and is assumed to be reliable. Numbers may not always add up due to rounding. Past performance is no guarantee of future results.
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-Mid |
Russell 2500TM |
|
|---|---|---|
| Quality | ||
| Return on Equity-Past 5 Years | 21.8% | 14.8% |
| Debt/EBITDA | 1.5x | 1.5x |
| Earnings Variability-Past 10 Years | 37.3% | 76.3% |
| Growth | ||
| Earnings Per Share Growth-Past 10 Years | 13.6% | 13.3% |
| Capital Generation--[ROE x (1-Payout)] | 19.4% | 12.9% |
| Value | ||
| P/E Ratio-Trailing 12 Months | 68.5x | 59.1x |
| Free Cash Flow Yield* | 1.7% | 2.3% |
| Market Characteristics | ||
| $ Weighted Average Market Cap | $14.2 B | $5.9 B |
| Largest Market Cap | $41.1 B | $18.6 B |
*Free cash flow data is as of [prior quarter end date]. Prices are as of [quarter end date]. Excludes financials.
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 the Disclosure page of the KAR Small-Mid Cap Sustainable Growth fact sheet. 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-Mid Cap
Sustainable Growth
(gross)
KAR Small-Mid Cap
Sustainable Growth
(net)‡
Russell 2500TM
Growth Index
*August 1, 2018
†All periods less than one year are total returns and are not annualized. Returns are final.
‡Net of all fees and expenses. Assumes a 0.85% annual fee. Fees presented on the Disclosure page of the KAR Small-Mid Cap Sustainable Growth fact sheet 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 Disclosure page of the KAR Small-Mid Cap Sustainable Growth 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 five months ended December 31, 2018.
This material is deemed supplemental and complements the performance and disclosure on the Disclosure page of the KAR Small-Mid Cap Sustainable Growth fact sheet. Returns of the Kayne Anderson Rudnick composite are final. For further details on the composite, please see the Disclosure page of the KAR Small-Mid Cap Sustainable Growth fact sheet. Data is obtained from FactSet Research Systems and is assumed to be reliable. Past performance is no guarantee of future results. Returns could be reduced, or losses incurred, due to currency fluctuations.
KAR Small-Mid |
KAR Small-Mid |
Russell 2500TM |
|
|---|---|---|---|
| Alpha | 7.38 | 6.47 | 0.00 |
| Sharpe Ratio | 0.51 | 0.47 | 0.14 |
| Information Ratio | 0.76 | 0.66 | N/A |
| Beta | 0.79 | 0.79 | 1.00 |
| Downside Capture | 70.67 | 72.03 | 100.00 |
| Tracking Error | 9.41 | 9.41 | N/A |
*August 1, 2018
This material is deemed supplemental and complements the performance and disclosure on the Disclosure page of the KAR Small-Mid Cap Sustainable Growth fact sheet. Returns of the Kayne Anderson Rudnick composite are final. For further details on the composite, please see the Disclosure page of the KAR Small-Mid Cap Sustainable Growth fact sheet. Past performance is no guarantee of future results. Returns could be reduced, or losses incurred, due to currency fluctuations.