Small Cap Value


The Phocas Small Cap Value strategy invests in stocks with market capitalizations approximately between $200 million and $4.0 billion and utilizes the Russell 2000® Value Index as a benchmark.


Phocas believes that active managers investing in inefficient markets can generate consistent long-term alpha for investors. Small cap stocks are less liquid and are increasingly under-followed which we believe makes the market inefficient.


Portfolios typically include between 100 – 120 stocks that are less expensive than their peers, have improving fundamentals, and clearly identified stock price catalysts. The team believes these securities will outperform their respective peer groups over a three to five-year market cycle.


Fundamental in-house investment research utilizes proprietary models that account for qualitative and quantitative factors including valuation and financial statement analysis as opposed to macroeconomic forecasting.


The strategy can be characterized as bottom-up and does not make sector bets and attempts to minimize macroeconomic tilts. The Phocas team strives to add performance through security selection rather than sector rotation.


Annualized Returns (%) As of 9/30/17 YTD 1 Yr 3 Yrs. 5 Yrs. 10 Yrs. Inception
Phocas Small Cap Value Fund (net) 6.01% 19.37% 10.80% 15.28% 8.85% 8.93%
Russell 2000 Value TR 5.68% 20.55% 12.12% 13.27% 7.14% 6.73%
Calendar Year Returns (%) 2017 2016 2015 2014 2013 2012 2011 2010 2009
Phocas Small Cap Value (net) 0% 24.07% -3.84% 7.82% 46.96% 10.12% -5.53% 30.17% 24.87%
Russell 2000 Value TR 0% 31.74% -7.47% 4.22% 34.52% 18.05% -5.50% 24.50% 20.58%

Performance %

Time Period: 5/1/2006 to 9/30/2017

Data presented reflects past performance, which is no guarantee of future results. Net performance shown reflects the deduction of annual investment management fees of 1.00% of assets under management. Performance returns may reflect the effect of material economic and market factors not anticipated by Phocas. Clients’ returns will be reduced by advisory fees and other expenses incurred in the management of the client’s account.