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Small-Cap Growth


The Small-Cap Equity Composite is a diversified portfolio invested in 30 to 40 Small-Cap growth equity securities, defined as having a market capitalization floor of $350 million and inclusion in the Russell 2000 index or an equivalent, nationally recognized Small-Cap index.

Investment Process


Idea Generation

“MOA” (Maker of Alpha)

Proprietary stock screen run weekly

Developed utilitzing research dating back to 1935

  • Identifies common characteristics of stocks in the early stage of a significant and steady price appreciation trend


Identifies acceleration and improvement in:

  • Free cash flow

  • Revenue

  • Earnings

  • Profit margins

  • Relative strength and momentum


The MOA screen reduces roughly 7,500 potential candidates down to an average of 10 to 20 candidates for further analysis.


Quantitative Ranking

Propietary “Competitive Scoring System”

Stocks are ranked from most attractive to least attractive


Compares 144 variables to the industry, sector, and S&P 500


Provides overall score and sub-category weightings:

  • Risk

  • Return

  • Margins

  • Growth

  • Turnover

  • Valuation

  • Balance Sheet Liquidity

  • Industry Outlook


Setting the priorities for further review.


Grunt Work

Exhaustive research money managers are paid to perform

Fundamental Research: Focuses on cash flow, earnings quality, earnings estimate revisions, and debt exposure


Technical Research: Explores trend lines, pricing patterns, Gannangles and Fibonacci retracement lines - “Where we make the difference”


Portfolio Construction

Target 30-40 companies that are positioned for internally funded sustainable growth, have superior technical characteristics, and are identifiably undervalued relative to their appreciation potential


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