Mid Cap

Investment Process

    • Investment philosophy and process based on Behavioral Finance will continue to drive outperformance
    • Blend of quantitative behavioral screens and rigorous fundamental analysis
    • We avoid behavioral flaws by constructing portfolios using current information, not past statistical relationships (i.e., optimizers)
    • Hillcrest neutralizes non-alpha factors to benchmark by only taking significant deviations relative to the benchmark on stock-specific factors like value, growth and sentiment
    • Hillcrest portfolios control risk by monitoring and managing sector weights, stock weights, characteristics and common factors to the S&P MidCap 400® index.
    • Hillcrest follows both internal risk-control guidelines and any client-specific restrictions when managing portfolios.

Portfolio Construction

Benchmark S&P MidCap 400® Index
Number of Holdings: 30 to 60 (depending on the client’s risk level)
Sector Weights: Typically -5% to +5% of S&P MidCap 400® Index weights
Minimum Sector Weight: 0%
Initial Position Size: 1.5% to 4%
Turnover: Typically about 25% to 35% annually
Liquidity: Less than 25% of average daily volume (based on an assumed $2 billion AUM)