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Institutional Money Mangement

Talking Money 600As an SEC Registered Investment Advisor, we provide an actively managed Small Cap Value investment strategy primarily geared toward institutional investors including Separate Account Platforms, Taft-Hartley Pension Funds, Sub-Advisory, Foundations, Insurance Companies, Corporations and private clients. The firm was founded in September 2006 and the track record dates to January 2004 and is GIPS (Global Investment Performance Standards) compliant at the firm level.


The investment team, in place since the firm’s inception, focuses on the small cap value segment of the U.S. equity market. We incorporate a quantitative as well as qualitative process to identify attractive and overlooked small cap purchase candidates. Our stock selection process is dynamic, opportunistic, and focused on risk-mitigation from a long-only perspective. The universe of prospective publically traded candidates is nearly 2000 companies with a market cap between $300 million and $3 billion.


Investment Objective

The Small Cap Value Strategy seeks to outperform the Russell 2000 Value by 150 to 300 basis points gross over a full market cycle.


BirdRock’s investment process is a value-driven approach that borrows techniques from both the deep-value and relative value school. It’s an alpha-driven style that is quantitative in order to narrow the universe of prospective candidates, and both bottom-up and fundamentally driven to select what we believe will be the return drivers for the portfolio over time. As stock pickers, the process is dynamic and not ridged. It’s focused on what we believe are companies trading at reasonable discount to fair value but not necessarily a deeply trouble discount. Our believe is not to mirror the benchmark, but to select the best companies we can identify that are trading with reasonable valuations coupled with improving fundamental characteristics.

By giving ourselves a more modest discount with which to work from, we are able to select from a larger universe of companies often overlooked or mispriced by the Street. This more modest discount has historically allowed us to minimize the “value traps” sometimes inherent to a deeply discounted value investment philosophy. The process also allows us to diversify the small value portfolio sufficiently to mitigate the risk of a concentrated portfolio but not too diversified as to be a mirror of the benchmark.

The process allows us the opportunity to build a bench of attractive prospective investment candidates, while our sell discipline has historically helped reduce downside volatility as measured by our downside capture numbers. This includes a discipline of selling issues not only when they reach their target value, but when other red flags may emerge prior to our price target being hit. Our qualitative factors also allows us to evaluate each stock vs industry and sector peers and those model are derived from extensive research across various type of market environments. Our qualitative risk assessment is also incorporated into the investment process in order to help us to identify significant company-specific risks that may ultimately lead to precipitous stock declines.


-Informa-PSN Top Gun Money Manager of the Decade. 2014.
-Multiple Informa-PSN Top Gun Money Manager awards.
-Morningstar Rating Five Star for the period ending Q3 2015.

 Location: Austin, Texas

 Substantial partner investment in the strategy.

Long-only, unhedged Small Cap Value.

*See disclosures.

Get in Touch

BirdRock Asset Management
9433 Bee Caves Rd
Austin, TX 78733 

Phone: (512) 236-0071
Fax: 512-430-1346

ManagerDecade 4Q 2014