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Small Cap Update

January 24, 2022

Avoidance of negative-earning biotechs helps small cap strategy outperform benchmark

The strategy returned 8.1% gross of fees in Q4 2021 versus 2.1% for the Russell 2000 benchmark. The strategy ended the year with a 30% rate of return gross of fees – a 15.2% rate of outperformance relative to the benchmark. The best performing sector was Health Care, driven by security selection and an avoidance of the negative-earning biotech stocks.