The Mid Cap investment strategy is a disciplined, objective investment process based primarily on a quantitative analysis of fundamental and technical factors that is designed to deliver robust performance. It is a mid-cap strategy. Although the definition of mid-cap stocks varies within the industry, Sector Capital Management defines “mid-cap” as companies with a market cap between $1 billion and $5 billion.

Through a quantitative, formula-driven evaluation of stock price versus earnings growth, Sector Capital Management is able to identify and select quality stocks that are trading at a discount relative to the present value of future earnings. This results in companies with high S&P and analyst ratings that have achieved superior historical earnings growth with relatively low P/E ratios. The quantitative nature of the formula allows Sector Capital Management to have a disciplined approach that is objective and repeatable over time.

In addition to stock selection the formula also encompasses a built-in sell discipline. However, if a stock that is currently part of the Mid Cap portfolio grows above the $5 billion market cap cutoff, but still meets the rest of the evaluation criteria, Sector Capital Management will not automatically sell this stock.

The portfolio targets holding 50 approximately equally-weighted stocks. With a mix of value and growth stocks, this style-balanced approach is designed to minimize risk and provide consistent added-value performance over the S&P 400 Mid-Cap Index. Furthermore, the Mid Cap strategy evaluates market strength and liquidity by selecting stocks that are actively traded and among the leaders in trading volume. The portfolios are reconstituted at least quarterly and rebalanced as needed.

The Mid Cap strategy is a thorough screening process that is designed to produce a high quality stock portfolio with robust performance. It is a quantitative, disciplined approach that is objective and repeatable. This style-balanced approach is designed to minimize risk while providing consistent added-value performance over the S&P 400 Mid-Cap Index in both value and growth markets. To see the Mid Cap strategy’s performance click HERE.