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 value of equity securities will fluctuate and, as a result, the strategy's share price may decline suddenly or over a sustained period of time.
Investing in equities is speculative and involves substantial risk.
The stocks of small- and medium-sized companies are often associated with higher risk than stocks of larger companies, including higher volatility.
The quantitative models and analysis used may perform differently than expected and negatively affect performance.
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.
EPS growth: The estimated average annual growth rate of fiscal year earnings per share for a given corporation.
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.
Price/book value ratio: A ratio used to compare a stock’s market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter’s book value per share.
Standard deviation: The square root of the variance. A measure of dispersion of a set of data from its mean.
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.
Beta: A measure of the volatility, or systematic risk, of a security or a portfolio, in comparison to the market as a whole.
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.
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.
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.
For a detailed discussion of Managed Account strategies or to receive additional information, please Contact Us.
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.
Portfolio characteristics are from the composite. Actual account characteristics of individual accounts may be different. 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.
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.
MDT Advisers, A Federated Advisory Company