Small Cap Value
Villanova Investment Management Company invests solely in U.S.-traded small capitalization companies (as defined by Russell 2000 Index), one of the most inefficient equity asset classes. We believe that our private market value philosophy in combination with our comprehensive bottom up research engine and unique decision making, will result in a concentrated portfolio (40-60 holdings) of attractively-priced companies. We believe that by applying our extensive small cap investment experience and distinctive investment philosophy and process, we can generate superior absolute and relative returns over an extended period (years) while protecting our clients’ capital on the downside.
Small caps generally outperform large caps – The Russell 2000 Value Index outperformed the Russell 1000 Value Index since inception (1/1/1979) through 12/31/2016 by 112Bps per annum. $100,000 invested in the small cap value index over the same time period would be worth $11.5 million today versus $7.9 million if the same amount had been invested in the large cap value index.
Value generally outperforms growth – The Russell 2000 Value Index outperformed the Russell 2000 Growth Index since inception (1/1/1979) through 12/31/2016 by 366Bps per annum. $100,000 invested in the small cap value index over the same time period would be worth $11.5 million today versus $3.3 million if the same amount had been invested in the small cap growth index.
Institutional and high net worth (accredited) investors can invest in our small cap value strategy through separate accounts or a privately-offered investment fund, subject to certain qualifications and investment minimums. Our principals have invested a substantial amount of their own capital in the small cap value product, making them true partners with our clients.
Performance data and additional information about our small cap value strategy can be furnished to qualified investors and institutions upon request.