The Piermont Small Cap Value strategy seeks to generate alpha utilizing 14 proprietary sector-specific, multi-factor models, each with a diverse, lowly correlated set of underlying factors. Stock-specific risks are identified through a qualitative risk assessment process. The strategy is effectively sector, beta, and market-cap neutral to the benchmark and diversified across 100+ stocks (3% max per position) with exposure to all major industries. Asset allocation, sector/industry rotation and market timing are not utilized. We believe that significant alpha generation opportunities in the small cap value segment of the market can be identified through a systematic, risk controlled and repeatable process. The strategy focuses on security selection, limiting undesired tracking error, and positioning the portfolio optimally regardless of the type of market and economic environment.
We believe consistent outperformance across various market environments and cycles can be generated from:
- Repeatable and Dependable Analytical Processes
- Pure Focus on Security Selection driven by Proprietary Sector-Specific Multi-Factor Models combined with a Qualitative Analysis
- Diverse, Lowly Correlated Set of Underlying Factors
- Methodic Evaluation of the continuing Efficacy of Factors and Weightings