Our Small Cap Equity Strategy is based on the belief that, over multiple market cycles, investing in stocks with strong fundamental business models at attractive prices will add value versus a passive benchmark. However, we are also cognizant of the impact that shorter-term pressures can have on markets. So, though our primary focus is always our core belief, we also stay alert to these other influences and believe that they can create additional opportunities to add value.
How We Make Equity Strategies Work For You:
We seek to identify companies capable of generating returns for you. We also consider secular trends that lend themselves to long-term investment horizons.
We evaluate risk and reward based on our expectations of company fundamental performance.
We value assets relative to market and growth prospects.
We monitor our investments closely. If we believe the investment prospects are less than we expected, we remove the stock from the portfolio.
The objective of Cavanal Hill’s Small Cap Equity Strategy is to generate a total return, net of all fees, in excess of the Russell 2000 benchmark over rolling three to five year periods.
|First $5,000,000||70 bps|
|Next $5,000,000||65 bps|
|Next $15,000,000||60 bps|
|Next $25,000,000||55 bps|
|Next $50,000,000||50 bps|
|More Than $100,000,000||45 bps|
Cavanal Hill’s small cap investment process is centered on evaluating stocks based upon four primary attributes:
Selecting stocks along each of these dimensions independently can provide attractive return potential; however, the combined impact of these themes generates diversification and produces an improved risk profile that is more conservative relative to the Russell 2000.