Small & SMid
Cap Core

Bottom-up, research intensive approach

Strategy Objective

Jennison’s Small and Smid Cap Core portfolios seek to outperform their respective Russell index and peer group over the intermediate/long term, with a risk profile similar to that of their benchmark.

Approach

Our investment style represents a blend of both growth and value and seeks companies across sectors and industries with attractive valuations that should experience solid earnings growth on an intermediate-term basis. The team uses bottom-up fundamental research and business evaluation to identify companies with the majority of the following criteria:

  • Strong competitive positions
  • Quality management teams
  • Positive industry dynamics
  • Balance sheet flexibility and strength
  • Strong earnings growth prospects
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Differentiating Characteristics

  • Focus on business evaluation
  • Highly experienced and deep team
  • Fundamental research based
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Philosophy

We believe that active management through bottom-up fundamental research can add significant value in uncovering inefficiencies that exist in smaller cap asset classes. The Small and SMid Cap Core styles represent a blend of both growth and value; however, the portfolio managers do not distinguish stocks in those styles when considering them for the portfolio. The team’s research-intensive approach allows the portfolio managers to build diversified portfolios with stocks in a variety of different industries and sectors. The team seeks to uncover companies that have attractive valuations and should experience solid earnings growth on an intermediate-term basis. The team’s underlying philosophy is to buy businesses rather than just stocks.

While past performance is not an indication of future results, we believe that the investment team’s long business experience of investing in small companies, and knowledge of company and industry developments, enhances our ability to make successful future judgments about investment opportunities in the Small and SMid Cap Core arenas.

Key Characteristics

Benchmark for Small Cap Core: Russell 2000® Index
Benchmark for SMid Cap Core: Russell 2500TM Index
Number of Holdings: Typically 110-135
Average Position Size: < 2.5%
Turnover: 40 – 60% under normal market conditions
Active Share: Approximately 90%
Cash: < 5%

Investment Team

Our Small/Mid Cap team includes four portfolio managers and five research professionals.

The investment universe is divided by sectors and/or industries, with individual team members having responsibility within their areas of expertise.

Portfolio managers and analysts continually discuss the merits and risks of each security, reviewing the fundamental outlook and stock valuation. This interactive process leverages the knowledge and skill of the entire investment team.

 

Meet the Team

Please remember that there are inherent risks involved with investing in the markets, and your investments may be worth more or less than your initial investment upon redemption. There is no guarantee that the investment managers’ objectives will be achieved. Professional money management is not suitable for all investors. The risks associated with investing include but are not limited to: derivative securities, which may carry market, credit, and liquidity risks; short sales, which involve costs and the risk of potentially unlimited losses; leveraging, which may magnify losses; high yield (“junk”) bonds, which are subject to greater market risks; small/mid cap stocks which may be subject to more erratic market movements than large cap stocks; foreign securities, which are subject to currency fluctuation and political uncertainty; real estate, which poses certain risks related to overall and specific economic conditions as well as risks related to individual property, credit and interest-rate fluctuations; and mortgage-backed securities, which are subject to prepayment and extension risks.

Thematic and concentrated portfolios may not be suitable for all investors. Such portfolios are non-diversified, so a loss resulting from a particular security will have greater impact on the portfolio’s return. Fixed income investments are subject to interest rate risk, and their value will decline as interest rates rise.

Your investment objectives, risk tolerance, and liquidity needs must be reviewed before suitable programs can be recommended. Asset allocation and diversification strategies do not assure a profit or protect against loss in declining markets. Investors should consult with their attorney, accountant, and/or tax professional for advice concerning their particular situation.

Additional considerations:
This web site is not intended as an offer or solicitation with respect to the purchase or sale of any security or other financial instrument or any investment management services.
The does not constitute investment advice and should not be used as the basis for any investment decision. There is no assurance that the strategy objectives as discussed will be met. Further, there is no assurance that any strategies, methods, sectors, or any investment programs herein were or will prove to be profitable, or that any investment recommendations or decisions we make in the future will be profitable for any investor or client.
These materials do not purport to provide any legal, tax or accounting advice.