Video Transcript

Bill Heaphy, CFA,
Head of the U.S. Value Equity Team

I think one of the nice parts about being a manager of small-cap benchmarks all the way up to mid-cap benchmarks is that we can follow the small-cap value stocks. And the good stocks eventually will grow value over time and become quality mid-cap stocks. So, you don’t really have this effect where just a few companies or a few industries really dominate the benchmark. You really can get broad exposure to the U.S. economy.

Matt Fleming, CFA
Portfolio Manager, U.S. Value Equity Team

We think SMID value offers a very interesting opportunity set because in many ways it’s the best of both worlds. The larger-market-cap, typically more liquid companies fall in the small side of SMID. At the same time, you’ve got a lot of great companies that started out as small-cap companies and grew and were successful, so they now populate the SMID-cap universe. At the upper end, you’re getting a lot of mid-cap companies that might be temporarily impaired and now have come into the SMID-cap universe.