Mid Cap Value SMA

SMA

Overview

Inception
Date

04.01.1999

Account
Minimum

$100,000

Philosophy

Seek to Purchase Companies at a Significant Discount to their Intrinsic Worth
Free Cash Flow is the Foundation of Intrinsic Value
Seek Businesses with Sustainable Competitive Advantages
Partner with Shareholder-Oriented Management Teams

Process

Fundamentally Driven Analysis of Each Company
Focus on Balance Sheet Strength
Multi-Faceted Valuation Analysis
Written Investment Thesis on Each Holding

Mid Cap Value SMA

Management

View professional designations disclosures

Andrew DiZio, CFA^®

Co-Portfolio Manager

Will Smith, CFA^®

Co-Portfolio Manager

Lee Houser, CFA^®

Associate Portfolio Manager

Performance

All Performance as of 12.31.2024
Term	QTR	YTD	1 Year	3 Years	5 Years	10 Years	Since Inception¹
Mid Cap Value SMA (Gross)	-1.27	7.96	7.96	2.42	7.43	7.55	10.89
Mid Cap Value SMA (Net)	-2.00	4.83	4.83	-0.57	4.30	4.42	7.68

The composite inception date is 04.01.1999. Effective 06.30.2023, the net of fee performance reflects the deduction of the maximum SMA bundled fee of 3.00% annually for all periods presented. Actual fees may vary by size and type of portfolio. Performance is preliminary and is annualized for periods longer than one year. Net of fees performance returns are presented net of the SMA bundled fee, which includes all charges for trading costs, advisory services, portfolio management, custody and other administrative fees. “Pure” Gross of fees performance returns do not reflect the deduction of any fees including trading costs: a client’s return will be reduced by the management fees and other expenses it may incur. Investment management fees are described in Sterling’s Form ADV 2A. Performance reflects the reinvestment of interest income and dividends and realized capital gains. The performance presented represents past performance and is no guarantee of future results. Performance is compared to an index: however, the volatility of an index varies greatly and investments cannot be made directly in an index. Market conditions vary from year to year and can result in a decline in market value due to material market or economic conditions. Sources: Russell Investments; Sterling Capital Management Analytics. Please refer to the GIPS Composite Report on the Fact Sheet linked above for additional disclosures.

Mid Cap Value SMA

Materials

SMA

Insights

03.07.2025 • Charles Wittmann, CFA^®

The Lead - Raising the Bar

- For the past two years, investors have experienced a powerful price momentum-driven market.
- Price momentum supported by earnings revisions typically have a tight relationship coming out of a recession, but 2024 was different.
- We explore the recent inverse relationship between momentum and dividend payers over this month and the past year.

02.28.2025

Sterling Capital Equity Announcement

Today Sterling Capital Management LLC announced the firm has made the difficult decision to close the Mid Cap Fundamental Value investment strategy.

02.04.2025 • Charles Wittmann, CFA^®

The Lead - Looking for More

- This month, our discussions with clients involved their search for fast dividend growers in the value space.
- We analyze the fastest dividend growers in the large cap value universe and ask if they are really growing their dividends or just reinstating them.
- We note how we look for both dividend growth and differentiated securities that combine attractive elements of growth, yield, and risk-adjusted returns.

01.27.2025 • Andrew Richman, CTFA

Meet Andrew Richman, Sterling Capital Managing Director and Senior Fixed Income Client Strategist

Sterling Capital is pleased to share this closer look at Andy Richman, Managing Director. In this spotlight, he shares his favorite Sterling tradition, the qualities he thinks are the most important in the investment industry, and the book that really had an impact on him. It’s great to have you on our team, Andy! Thank you for everything you do, and for sharing this with us.

01.15.2025 • Charles Wittmann, CFA^®

The Lead - Quality Dynamics

- 4Q24 generated interesting dynamics in terms of what stocks worked and what didn’t based on quality.
- We discuss how low-quality stocks with B or worse ratings outperformed higher-quality stocks of B+ or better by +4.12% in the quarter and +10.50% in 2024.
- In addition, unprofitable stocks were top performers during the quarter in the Russell 1000® Value Index.
- Finally, we share how managers who were willing to own stocks with risk related to interest rates, the macroeconomy, or higher balance sheet leverage performed in the value space relative to their peers.