Micro Cap Value
Our micro cap value equity* portfolio is comprised of approximately 55 extremely small companies that receive little or no interest from Wall Street. We rely on a comprehensive process to seek out companies that:
- Are industry leaders in niche markets
- Trade at attractive valuations
- Have sustainable free cash flow
- Grow dividends for shareholders
- Exhibit above-average financial strength
View detailed Micro Cap Value portfolio characteristics (PDF)
Investment Process
Beginning with a universe of 2,000 of the smallest companies based on market capitalization, the Micro Cap Investment team performs both thorough quantitative analysis and rigorous fundamental qualitative analysis that includes
- Screening through a proprietary valuation model
- Meetings with management
- Conversations with employees, customers, suppliers, competitors and consultants
Sell Discipline
Our sell discipline is as important as our buying strategy. The portfolio undergoes continuous monitoring and risk management evaluation by the micro cap investment team. We consider for full or partial sale any stock that has
- Met our sell target
- Fundamentally changed
- Shown strong price appreciation
Securities may also be sold to fund better opportunities. This ongoing process assures that the portfolio stays true to our market capitalization while minimizing risk for our clients.
To learn more about how our team constructs portfolios and makes investment decisions, please read an interview with our U.S. value equity management team.
* A pooled fund investment is available for this sub-asset class.
The information contained herein is for informational purposes only. It does not constitute an offer to sell nor a solicitation of an offer to buy an interest in any Mesirow Financial investment vehicle(s). Any offer can only be made through the appropriate Offering Memorandum which contains important information concerning risk factors and other material aspects of the investment and should be read carefully before an investment decision is made. A complete list of composites can be made available upon request. Information is provided in U.S. dollar denominations.
