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


Gross Returns
Net Returns
Russell 2500
QTD 36.14% 36.02% 28.51%
1 Year 11.05% 10.64% 4.88%
3 Year 4.60% 4.28% 4.34%
5 Year 9.13% 8.87% 9.43%
Since Inception* 8.84% 8.63% 7.52%

Annual compounding rates of return ending 12/31/2020
*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
% of non fee paying clients % of bundled fees
2020 11.05% 10.64% 4.80% 29% 25% 0.61 5 or fewer 0.033% 1,831.3 N.A. 35.4 0.0
2019 23.95% 23.57% 23.56% 17% 14% 0.43 5 or fewer 0.018% 2,300.8 N.A. 45.3 0.0
2018 -16.99% -17.52% -12.86% 17% 16% 2.81 5 or fewer 0.130% 2,169.9 N.A. 5.5 0.0
2017 1.34% 0.75% 7.84% 15% 14% 3.41 5 or fewer 0.139% 2,458.6 N.A. 5.5 0.0
2016 36.41% 35.85% 31.74% N.A. N.A. 2.31 5 or fewer 0.089% 2,609.7 N.A. 9.0 0.0
2015 -1.84% -1.84% -7.47% N.A. N.A. 0.15 5 or fewer 0.004% 3,480.2 N.A. 100.0 0.0
2014* 5.26% 5.26% 9.40% N.A. N.A. 0.16 5 or fewer 0.002% 9,154.3 N.A. 100.0 0.0

*Composite inception date is 9/30/2014


December 31, 2020

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

Characteristics OSMCV Russell 2500 Value
5 Yr Hst. EPS Growth(Ex-Zeros) 14.6% 12.0%
LT Est. EPS Growth—Wtd Avg 10.0% 9.6%
Price/Cash Flow—Wtd Avg 8.4x 8.2x
ROE 13.8% 7.9%
Enterprise Value/EBITDA 8.6x 17.3x
Dividend Yield—Wtd Avg 1.3% 2.0%
Market Cap—Wtd Avg 4.7B 6.1B
Market Cap—Wtd Avg 4.2B 1.2B

Sector Weights

December 31, 2020

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. N.A.-Information is not statistically meaningful due to an insufficient number of portfolios in the composite for an entire year. 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. The Opportunistic Small-Mid Cap Value composite incepted on September 30, 2014 and was created in August 2015. The annual composite dispersion is an asset-weighted standard deviation calculated for the accounts in the composite the entire year. The 3 year ex post standard deviation is not presented because 36 months of returns are not available.  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, 2020. The verification and performance examination reports are available upon request.  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.  Verification does not provide assurance on the accuracy of any specific performance report.  The firm maintains a complete list and description of composites. Policies for valuing investments, calculating performance, and preparing GIPS Reports are available upon request. Benchmark returns are not covered by the report of independent verifiers.  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.