Overview
Inception
Date
12.31.2001
Account
Minimum
$100,000
Philosophy
- We believe that undervalued stocks offer superior appreciation potential with reduced volatility
- Focused on relative value: identifying stocks which are undervalued versus their peers
- Aim to add value primarily through positive stock selection across economic sectors
- Our long-term perspective values companies with multi-year catalysts and produces low portfolio turnover
Process
- Disciplined "Relative Value" Approach Combines the Benefits of both Quantitative and Fundamental Research
- Quantitative Analysis: reduces the small cap universe to a select group of undervalued stocks with favorable earnings and price momentum characteristics
- Qualitative Analysis: identify those undervalued stocks which possess a fundamental catalyst to drive earnings and valuation
Portolio Manager
Associate Portfolio Manager
Associate Portfolio Manager
Performance
| Term | QTR | YTD | 1 Year | 3 Years | 5 Years | 10 Years | Since Inception1 |
|---|---|---|---|---|---|---|---|
| Small Cap Value (Gross) | 2.85 | 2.85 | -7.41 | 21.71 | 6.08 | 8.95 | 10.42 |
| Small Cap Value (Net) | 2.60 | 2.60 | -8.33 | 20.69 | 5.19 | 8.03 | 9.42 |
The composite inception date is 12.31.2001. Performance is preliminary and is annualized for periods longer than one year. Net of fees performance returns are preliminary and are presented net of the investment management fees and trading expenses. Gross of fees performance returns reflect the deduction of 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.
Small Cap Value
Materials
SMA
Insights
05.22.2023 • Andrew Richman, CTFA
Sterling Capital Viewpoint: The Debt Ceiling
Our view on the current market environment in light of the upcoming debt ceiling deadline.
05.05.2023 • Charles Wittmann, CFA®
The Lead - "Perspective on Quality and Dividend Growth"
- In our study, we took a closer look at the characteristics that we believe were additive to performance for the trailing time periods ended December 31, 2022. - BofA Global Research provided data for the performance of ROE over these timeframes, and it performed well relative to the Russell 1000 Value. - We believe dividend growth was additive to our Equity Income strategy over the time periods studied, which is consistent with the data from Ned Davis Research. - As an investment team, we seek to accentuate the benefits of our investment process to deliver positive outcomes for clients.
05.04.2023 • Andrew Richman, CTFA
Fed Raises 25 Basis Points But Sets the Table for a Possible Pause
In a move widely anticipated by the markets, the Federal Reserve (Fed) raised rates an additional 25 basis points to arrange of 5.00% to 5.25%. This is the highest in over 15 years and a 5.0% move in a little over 13 months.
04.27.2023
Press Release: Equity Personnel Updates
Today Sterling Capital announces the resignation of Joshua L. Haggerty, CFA®, Co-Portfolio Manager of the firm’s Special Opportunities strategy, effective immediately. Effective tomorrow, James L. Curtis, CFA® will be promoted to serve as Co-Portfolio Manager of the Special Opportunities strategy.
04.12.2023 • Charles Wittmann, CFA®
The Lead - "Equity Income Fund Wins Lipper Awards"
- In March, the Sterling Capital Equity Income Fund received two Refinitiv Lipper fund awards for the “Best Fund Over 3 Years” and the "Best Fund Over 5 Years” in the Equity Income Funds category. - First, we see the awards as confirmation that the investment team is managing its investments consistent with its stated mission. - Second, we recognize the winners are the clients who have been invested in Sterling Capital Equity Income over the past three and five years. - We are happy and excited that the true winners are our valued clients.
03.24.2023
Sterling Capital Equity Income Fund receives two 2022 Lipper Fund Awards
Sterling Capital Management is delighted to announce that our flagship Equity Income Fund received two Lipper Awards in the March 23, 2023 award ceremony in New York. Co-portfolio managers Chip Wittmann, CFA® and Jeremy Lopez, CFA®, were in attendance to accept this prestigious honor. The Equity Income Fund R6 Share Class (ticker: STREX) won in the three-year performance category, from a peer group of 390 equity income funds. The Equity Income Fund Institutional Share Class (ticker: BAEIX) won in the five-year category, from a peer group of 374 equity income funds.
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