Clover Small Cap Value SMA

Separately Managed Accounts . Small Cap .

Overview

 
STRATEGY

An active equity portfolio that seeks long-term capital appreciation by investing primarily in small-cap U.S. companies whose stocks are believed to be trading below their intrinsic values. The Federated Hermes Clover team combines disciplined bottom-up, fundamental analysis with rigorous quantitative analysis to seek to exploit inefficiencies in the market. The strategy targets alpha through security selection which centers upon free cash flow analysis, delivering style-pure exposure to the small-cap value segment of the stock market.

KEY FACTS
Key Facts - Part 1
Benchmark Russell 2000® Value Index
Key Facts - Part 2
Strategy Inception Date December 1 2011
INVESTMENT GOALS Retirement
Growth
Income
KEY INVESTMENT TEAM
Stephen Gutch, CFA
Senior Vice President
Senior Portfolio Manager

joined Federated Hermes
28 years of experience
Eric Triplett, CFA
Vice President
Portfolio Manager
Senior Investment Analyst

joined Federated Hermes
9 years of experience

Characteristics

Commentary

Documents

 
DISCLOSURES

Investment strategies described on this site are not necessarily available through every sponsor program. Please check with your Federated Hermes representative or your home office to ascertain accessibility.

The stocks of small- and medium-sized companies are often associated with higher risk than stocks of larger companies, including higher volatility.

When investing in value securities, the market may not necessarily have the same value assessment as the manager, and, therefore, the performance of the securities may decline.

Index descriptions (An index is unmanaged and has no expenses, and it is not possible to invest directly in an index.)

The characteristics are based on a portfolio which is used as a guide for cloning (or managing) underlying accounts to a particular strategy. Taking into consideration individual investor circumstances could cause deviation from this guide (e.g. restrictions, tax requests, etc.). Portfolio characteristics are as of the date shown above and are based on individual securities in the portfolio on that date. Securities in the portfolio are subject to change.

Risk statistics are based on gross performance. Statistics shown are not indicative of future statistics and are not representative of future portfolio performance.

Russell 2000® Value Index: Russell 2000® Value Index measures the performances of small-cap value segment of th U.S. equity universe.  It includes those Russell 2000® Index companies with lower price-to-book ratios and lower forecasted growth values

For a detailed discussion of Managed Account strategies or to receive additional information, please Contact Us.

Views are as of the date above and are subject to change based on market conditions and other factors. These views should not be construed as a recommendation for any specific security or sector.

Investing in equities is speculative and involves substantial risk.

Price-to-earnings ratio (P/E): A ratio comparing the company’s current share price, as compared to its earnings-per-share, for the last twelve months (LTM), or estimated for the next 12 months (NTM), current fiscal year (FY1), or next (forward) fiscal year.

Standard deviation: The square root of the variance. A measure of dispersion of a set of data from its mean.

Sharpe ratio: is calculated by dividing a fund’s annualized excess return over a risk-free rate by the fund’s annualized standard deviation. The higher the Sharpe ratio, the better the fund’s historical risk adjusted performance. 

Beta: A measure of the volatility, or systematic risk, of a security or a portfolio, in comparison to the market as a whole.

Tracking error: The standard deviation of the difference between a portfolio’s returns and the benchmark or index it was meant to mimic or beat.  

R-squared: A statistical measure that represents the percentage of a fund or security’s movements that can be explained by movements in a benchmark index.

Upside capture ratio: A statistical measure of an investment manager’s overall performance in up markets.

Downside capture ratio: A statistical measure of an investment manager’s overall performance in down markets.

Issues discussed within this communication represent the investment manager's explanation of factors that were considered when executing transactions or holding specific securities on the prior date indicated. Because this is a managed portfolio, the investment mix will change and the holdings are not indicative of future portfolio composition. Marketplace conditions fluctuate suddenly and frequently, and investment manager's opinions may change. These comments are not intended to be and do not constitute recommendations that others buy, sell or hold any of the securities discussed. 

Refer to the GIPS report found on this website in the Performance Profile found in the Documents section.

For printing purposes, this commentary must be accompanied by the full GIPS report.

Past performance is no guarantee of future results.

For additional information, including definitions of related terms and indexes, see the Financial Glossary and Benchmark Index Glossary.

Federated Investment Counseling