Stock prices move up and down over the short term with cyclical changes in interest rates, capital market flows and changes of perceptions of business prospects of the companies in question. Healthy stock markets, strong capital flows, low interest rates and good business news tend to make share prices rise; weak stock markets and capital flows, high interest rates and adverse business news tend to have the opposite effect. Macroeconomic cycles can also affect individual industry sectors of the broad stock market differently.
Some stock investors attempt to "call" these macroeconomic cycles. Phocas Financial believes that this approach cannot succeed over the long term.
Long Term RewardsOur Small Cap Value strategy is geared to provide outstanding returns over long time periods with minimal risk, across macroeconomic cycles and industry sectors. We focus on broadly diversified positions in Small Cap Value equities, using both qualitative and quantitative criteria to choose those companies that provide the best long-term value.
DiversificationWe strive for balance through diversification of our Small Cap Value holdings across major industrial sectors, with an emphasis on stocks with a high potential for attractive appreciation.