Small-Cap Value
Small- to Mid-Cap
Large-Cap/Globally Dominant
Equity Strategies
Fixed Income Strategies
Small-Cap Value
INVESTMENT PHILOSOPHY
ICM’s Small-Cap Value equity strategy begins with the search for inefficiently-priced companies that have either fallen into disfavor among investors and/or are under-researched. These opportunities are usually a result of weakness in a company’s economic sector or are due to individual company missteps. Our Investment Team then applies fundamental research analysis generally involving direct contact with management teams of the companies being considered. Direct research is then typically augmented by discussions with Wall Street analysts, industry experts, suppliers, competitors, and customers. Our Research Team sets price targets based on our expectations of normalized price-to-earnings ratios or what we believe should be a fair valuation for those companies.
This process strives to position our clients in a portfolio of these overlooked companies in anticipation of the market’s discovery or renewed appreciation of their investment values. We believe this methodology provides a disciplined approach that can be consistently repeatable, in part, because Wall Street will turn excessively negative on the occasional company or industry. Disciplined, opportunistic investors are then able to capitalize when these events occur. Our commitment to finding value-priced stocks poised for reaccelerating earnings may occasionally lead to fully different sector weightings than the Russell 2000 Value Index. As a result, our methodology is best evaluated in comparison with a combination of the Russell 2000 and Russell 2000 Value Indices for a clearer understanding of returns and variability during each quarter.
