SMALL CAP EQUITY
Mutual Fund

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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 should 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 should
    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 grows to two times the maximum capitalization of the Russell 2000. (The fund's five-year average annual turnover has been approx. 62%)

Robert Mancuso

Christopher Colarik