The objective of the NIS small cap equity strategy is to provide long-term capital appreciation.
Our small cap equity strategy invests in U.S. equities with a market cap range of $100 million and $10 billion. We combine macro analysis with a traditional value-based, fundamental stock selection approach.
NIS has $25 Million in small cap equity assets under management
As of 9/30/19
STRATEGY AT A GLANCE
- Macro analysis & traditional value. Our small cap equity strategy combines macro analysis with a traditional value approach to stock selection. We favor companies that are excellent cash flow generators with solid balance sheets. Combining a traditional value-based approach with macro analysis helps us identify sectors and industries to favor or avoid.
- Sector-focused macro. Macro-economic trends influence market cycles and asset returns — and they also have a significant impact on sector performance within equities. Our macro analysis helps us identify sectors or industries to overweight and underweight. We focus on the direction of leading economic indicators and how that relates to the market cycle.
- Catalyst-driven value. Valuation alone is not a catalyst, it is only a condition. Therefore, while we search for stocks that not only appear to be trading below fair value, we also place a high priority on defining the catalyst that will unlock the value. Sometimes that is a fundamental change driven by the management of the company such as an innovation, an acquisition, or a change to their structure. Other times, that catalyst is a macro economic development — hence there is a strong connection between our macro analysis and our stock selection.