Investment Objective

Our goal in the TIM Small/Mid Value portfolios is to provide superior risk-adjusted returns and consistently outperform the Russell 2500 Value Index over a full market cycle (typically 3-5 years). We aim to accomplish this by creating portfolios of companies we expect to exceed “street” expectations and that trade at discounts to our in-house calculations of fair value.

Philosophy

• Fundamental and research driven approach to identifying companies with growth rates well above the average for the value benchmark and price ratios (at purchase) that are noticeably lower than the benchmark’s average.
• Identify companies that exhibit superior business models with good growth potential
• Identify operating and competitive characteristics that provide downside protection
• Favor companies that produce positive earnings surprises which result in multiple expansion
• Attractive valuations in favor of stocks with PE multiples lower than the earnings growth rate

Portfolio Structure

• Concentrated portfolio of generally 35 to 50 securities
• Minimum market cap of $300 million; maximum market cap of $5 billion (at time of purchase)
• Broadly diversified by industry and sector
• Turnover range typically 25-50%
• Generally fully invested