Skip to main content

Small Cap/SMID – Opportunistic SMID Cap Value



To provide attractive risk adjusted returns versus the Russell 2500 Value over a full market cycle.

Investment Merits

1. Opportunity derived from market emotion

Timeless investment philosophy with a disciplined process designed to eliminate behavioral biases

2. Focus on companies with a high degree of pessimism implied by the market

We believe these companies offer high prospective returns

3. Concentrated portfolio with high active share

Portfolio encompasses the 75 most compelling ideas

4. Avoidance of areas or sectors of the market we view as overpriced

Helps to mitigate the risk of permanent capital loss

Video Introduction

Opportunistic SMID Cap Value


Gross Returns
Net Returns
Russell 2500
QTD 10.49% 10.37% 6.07%
1 Year 27.52% 26.97% 21.33%
3 Year 10.80% 10.30% 5.36%
5 Year 15.09% 14.53% 9.37%
7 Year 10.93% 10.38% 7.74%
Since Inception* 11.58% 11.05% 8.39%

Annual compounding rates of return ending 3/31/2024
*Composite inception date is 9/30/2014

Gross Returns
Net Returns
Russell 2500 Value Gross
3yr St Dev
Russell 2500 Value
3yr St Dev
Composite assets $millions Accounts at period end Percent of firm assets Firm assets $millions Gross
Composite dispersion
2023 20.95% 20.41% 15.98% 21% 21% 29.10 5 or fewer 1.535% 1,896.2 N.A.*
2022 -9.96% -10.39% -13.08% 29% 26% 24.36 5 or fewer 1.430% 1,703.9 N.A.*
2021 38.65% 38.03% 27.78% 28% 24% 27.19 5 or fewer 1.407% 1,932.1 N.A.*
2020 11.05% 10.43% 4.88% 29% 25% 0.61 5 or fewer 0.033% 1,831.3 N.A.*
2019 23.95% 23.31% 23.56% 17% 14% 0.43 5 or fewer 0.018% 2,300.8 N.A.*
2018 -16.85% -17.27% -12.36% 15% 14% 0.30 5 or fewer 0.014% 2,169.9 N.A.*
2017 7.46% 6.92% 10.36% 14% 12% 0.31 5 or fewer 0.013% 2,458.6 N.A.*
2016 25.82% 25.27% 25.20% N.R. N.R. 0.31 5 or fewer 0.012% 2,609.7 N.A.*
2015 -1.32% -1.72% -5.49% N.R. N.R. 0.26 5 or fewer 0.007% 3,480.2 N.A.*
2014* 11.18% 11.06% 6.09% N.R. N.R. 0.11 5 or fewer 0.001% 9,154.3 N.A.*

*Composite inception date is 9/30/2014
N.R. – Not Required


December 31, 2023

The end result of the investment process is a portfolio comprised of companies with solid growth prospects trading at compelling valuation levels.

Characteristics SMIDCV Russell 2500 Value
5 Yr Hst. EPS Growth(Ex-Zeros) 17.3% 17.4%
LT Est. EPS Growth—Wtd Avg 13.6% 9.1%
Price/Cash Flow—Wtd Avg 16.0x 14.0x
ROE 19.3% 12.5%
Enterprise Value/EBITDA 13.6x 18.1x
Dividend Yield—Wtd Avg 0.9% 1.9%
Market Cap—Wtd Avg 8.0B 7.1B
Market Cap—Median 6.5B 1.4B

Sector Weights

December 31, 2023

Sector weights can be materially different from the benchmark as a result of our bottom-up investment process


Opportunistic Small-Mid Cap Value contains fully discretionary accounts that are comprised of around 50-100 securities that typically have capitalizations between $250M and $10B. For comparison purposes the composite is measured against the Russell 2500 Value Index. Cornerstone Investment Partners is an independent, employee-owned investment advisory firm.  Results are based on fully discretionary accounts under management, including those accounts no longer with the firm. Past performance is not indicative of future results. The U.S. Dollar is the currency used to express performance. Returns are presented gross and net of management fees and include the reinvestment of all income.  Net of fee performance was calculated using actual management fees. For non-fee-paying accounts, a model fee based on the standard investment advisory schedule was applied. The Opportunistic Small-Mid Cap Value composite was incepted on September 30, 2014 and was created in August 2015. N.A.* The annual composite dispersion is an asset-weighted standard deviation calculated for the accounts in the composite for the entire year. This is not shown when there are 5 or fewer accounts in the composite for the entire year as it is not statistically meaningful. Cornerstone Investment Partners claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Cornerstone Investment Partners has been independently verified for the periods September 30, 2001 thru December 31, 2023.  A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards.  Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis.  The Opportunistic Small-Mid Cap Value composite has had a performance examination for the periods September 30, 2014 thru December 31, 2023.  The verification and performance examination reports are available upon request.  Benchmark returns are not covered by the report of independent verifiers. Policies for valuing investments, calculating performance, and preparing GIPS Reports are available upon request.To receive a list of composite descriptions and/or additional information, contact Cornerstone Investment Partners at 3438 Peachtree Rd, NE; Suite 900; Atlanta, GA 30326, 404-751-3850 or The general fee schedule for accounts is as follows: 0.90% on the first $10,000,000; 0.75% on the next $40,000,000 and 0.50% on the balance. Actual investment advisory fees incurred by clients may vary.  GIPS® is a registered trademark of CFA Institute.  CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. Due to the marketing rule that went into effect on 11/4/22, the net returns were updated to comply with this regulation.  Additional information is available upon request.