The BirdRock Small Cap Value Strategy is a discretionary equity product that invests in 40-60 companies with market caps between $300mm-$2.5BN. Our investment process is characterized as bottom up fundamental; employing both quantitative and qualitative screening/research methods utilizing both “traditional” and “relative” value metrics/screens. Historically, our Small Cap Value composite has displayed medium/high tracking error as well as lower beta and standard deviation vs the Small Cap Value Index. We do not “hug” the index. We prefer exposure to all sectors but not to a stated tracking error mandate. Historically, our “value add” through active management is more attributed to stock selection vs. activity, timing or tactical factors.

Our philosophy is that small cap equities offer investors some of the highest rates of return on capital over time; and, that value investing provides investors with the best, risk-adjusted investment returns over the long term through active management. As investors in a volatile asset class, we approach the small cap value space with prudence; investing within “larger” small cap companies with stronger balance sheets. We take a forecasted and/or a contrarian approach to quantitative/qualitative information that may be interpreted differently and perhaps incorrectly by other interested parties.

  • We look to capture excess alpha. However, we have a bias in attempting to preserve capital (avoiding large drawdowns) especially in difficult market conditions as reflected with our long-term downside capture metrics.
  • We avoid “deep value” play and companies capitalized under $300mm and prefer value on the move, which implies relative strength. We also look for dividend payers and companies with possible "catalyst amplifier(s)"- the identification of a catalyst is often the transformative impetus to share price appreciation for a “value” company.
  • Our small cap strategy has acted as an “all weather” value strategy capturing alpha while providing dividend yield with exceptional "manager relative" protection of principal during down markets.
  • A core strength of our strategy is our investment team’s long tenure of working together; managing small cap portfolios through multiple economic/market cycles.

Click here to access the BirdRock Small Cap Value quarterly performance tearsheet.

Contact Aaron Soderberg, Director of Institutional Marketing/Client Services at to learn more or to schedule a manager’s conference call.

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