News & Insights

SMID Portfolio — White Paper

In this paper, we discuss several advantages the small-mid cap (smid) asset class represents for investors, their consultants, and plan sponsors. Smid stocks have shown a long-term pattern of outperformance at reduced levels of volatility compared to small cap stocks alone and offer the benefit of exposure to both small and mid cap companies in one portfolio, reducing the need for asset owners to select and monitor multiple small and mid cap managers.

Due to the characteristics of small cap companies, and to a lesser extent mid cap stocks, we find that managers in these asset classes have demonstrated strong track records in outperforming their benchmarks. The result is a wide selection of capable alternatives for investors seeking to allocate to the smid asset classes.

The smid arena is also a natural fit for managers that employ an intrinsic value investment philosophy and process that views candidates for investment as “companies” rather than “stocks.”

Read The White paper