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“We believe we can construct a diverse portfolio of high-quality, small-cap value stocks that can broadly outperform the Russell 2000 Value Index through rigorous analysis of companies with our unique long-term perspective.”

— Jeremy H. Javidi, Senior Portfolio Manager

Investment Approach

The Columbia Small Cap Value I portfolio seeks to provide consistent, repeatable excess returns, relative to the Russell 2000 Value Index. Our management team combines fundamental and quantitative analysis with risk management techniques to construct a highly diversified portfolio of high-quality, small-cap value companies with reduced volatility.

Distinguishing Features

  • Strategy is an ownership model where we invest in high- quality companies with a long-term perspective
  • Research and disciplined valuation criteria are the cornerstones of the Investment process
  • Thematic baskets leverage proprietary research by exploiting different investment avenues with exposure to attractive long-term trends to improve the “probability of success” of value creation

Investment Process

Define and evaluate investable universe

Prioritize candidates for further research

  • Universe is the Russell 2000 Value Index
  • Rank candidates using proprietary factor analysis identifying valuation, quality and catalysts
  • Leverage strengths of internal investment including, Value Strategies team's perspective, fundamental-research analysis, trading insight and company meetings
Conduct research and valuation analysis

Identify 185-220 companies that must exhibit strength in the “fundamental trinity”

  • Stronger-than-average balance sheet
  • Better-than-average cash flow
  • Lower-than-average valuation
Construct portfolio and manage risk

Determine risk budget and allocate risk to maximize alpha

  • Through understanding risk, the team is able to assess risk and allocate it to stock selection
  • Eliminate unintended bets, increase consistency of return, ensure style integrity
  • Low cash drag, low turnover and style purity features of disciplined portfolio construction