The Sycamore Small Cap Value strategy employs an opportunistic approach focused on investing in high quality yet undervalued businesses with above-average financial strength that the team believes are currently mispriced by the market, generally due to temporary earnings challenges, negative investor sentiment or cyclical pressures. The team utilizes elements of both deep and relative value in order to exploit the inefficiencies inherent in the small cap asset class as well as the short-term nature of many market participants.
Philosophy & Process
The strategy employs a bottom-up investment process to build a diversified portfolio of small cap companies that the investment team believes are undervalued and offer above-average total return potential. In building portfolios, the team identifies companies that it believes to possess each of the following attributes - undervaluation, above-average financial strength and the prospect for improving fundamentals. A bottom-up, value approach to investing in better businesses offers the clearest path to excess return.