Cornerstone Investment Partners believes that stock prices are far more volatile than the fundamentals that determine value. This belief stems from the observation that the market tends to overreact to incremental pieces of information, whether pushing prices too far to the downside on pessimistic outlooks or pushing prices too high as optimism flourishes. Particularly for small and mid-cap stocks, investor perceptions often change quickly and even independently of the fundamentals a company is likely to achieve. Cornerstone uses the stock price today to identify what the market expects in terms of profitably and growth from companies and identifies those opportunities where there is an asymmetrical payoff function given unlikely market expectations. The portfolio focuses on companies with market capitalizations between $250 million and $7 billion at the time of purchase. Cornerstone’s Opportunistic Small-Mid Cap Value portfolio is typically comprised of 75 stocks, conviction weights with position sizes with a maximum of 5% in any one name. Sector weights are constrained to the greater of the benchmark weight or 30% of the portfolio with no minimum.