SMALL CAP EQUITY
Separate Account

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STRATEGY
Glenmede’s approach to small-cap investing
is long term and risk averse. We believe a diversified portfolio of stocks that are inexpensive and exhibiting company-specific positive trends will outperform the market.

INVESTMENT STYLE

    

DISCIPLINE
Security 
We begin with a Universe of 3,500 stocks and sort them into eight economic sectors and rank them based on the following characteristics:

▪  Valuation and Growth price/earnings (the
   most significant factor), enterprise
   value/earnings before interest, taxes,
   depreciation and amortization, price/book value,
   return on equity, yield, and growth rate.

▪  Earnings Catalysts and Market
   Confirmation relative price momentum,
   earnings and sales surprise, and earnings
   estimate revision (these factors give us
   confidence that a stock price will appreciate
   sooner rather than later).

Sector 
For each sector of the equal-weighted Russell 3000, we compare current versus historical valuations (price/earnings, price/book, and yield) on absolute and relative bases. This process guides our portfolio sector exposure.

Sell Discipline
A sale is required when price appreciation or fundamental deterioration moves a stock to the bottom quartile of our universe or market capitalization grow to two times the maximum of the Russell 2000. (The Fund's five-year average annual turnover has been approximately 62%).
 

Robert Mancuso