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Institutional Product Descriptions

Core Growth Equity

The Core Growth portfolio seeks to generate returns above the benchmark Russell 1000 index over a full market cycle with less risk. This is accomplished by purchasing and owning the stocks of 20 to 25 high-quality, large-sized companies (those possessing market capitalizations greater than $5 billion) with the intention of holding them for the long term. The portfolio is designed to deliver superior downside protection while fully participating in market rallies.

Companies considered for the portfolio have these characteristics: consistent earnings growth and an EPS growth rate of at least 10%; return on equity of at least 15%; strong balance sheet with the debt/total capitalization ratio not exceeding 35%; and a minimum of 10 years of public financial data.

The inception date of the Core Growth portfolio is June 30, 1998. The investment approach is fundamental after a proprietary, multi-factor front-end analysis is used to narrow a starting universe of about 900 stocks to roughly 270 names. The philosophy and approach of Core Growth are unchanged from its inception.

2Q2018 Core Growth FactSheet

Midcap Core Growth Equity

The Midcap Core Growth Equity portfolio seeks to generate returns above the benchmark Russell Mid-Cap index over a full market cycle with less risk. This is accomplished by purchasing and owning the stocks of 35 to 40 high-quality, mid-sized companies (those possessing market capitalizations ranging from $2 billion to $20 billion) with the intention of holding them for the long term. The portfolio is designed to deliver superior downside protection while fully participating in market rallies.

Companies considered for the portfolio have these characteristics: consistent earnings growth and an EPS growth rate of at least 10%; return on equity of at least 15%; strong balance sheet with the debt/total capitalization ratio not exceeding 35%; and a minimum of 5 years of public financial data.

The inception date of the Midcap Core Growth portfolio is September 30, 2003. The investment approach is fundamental after a proprietary, multi-factor front-end analysis is used to narrow a starting universe of about 1,000 stocks to roughly 175 names. The philosophy and approach of Mid-Cap are unchanged from its inception.

2Q18 Midcap FactSheet

SMid Cap Equity

The SMid Cap Equity is a concentrated, quantitative equity strategy which seeks capital appreciation from investments in the common stocks of U.S. and multinational companies. The portfolio holds positions in firms with superior financials and rapid earnings growth that have the greatest stock price momentum. A proprietary, multi-factor front-end analysis is used to narrow the starting universe of about 2,500 stocks across the mid-, and small-cap market cap ranges to roughly 400 names. Companies considered for the portfolio must have all of these characteristics: consistent earnings growth and an EPS growth rate of at least 10%; return on equity (ROE) of at least 15%; strong balance sheet with the debt/total capitalization ratio not exceeding 35%; and a minimum of 2 years of public financial data.

A price momentum overlay is then applied, and those stocks whose relative strength is at least in the 80th percentile are selected for the next step. The current price of each of the approximately 40 stocks is compared to their 50- and 200-day moving averages, and names whose prices are above both averages are eligible to be purchased, pending a check on company fundamentals and data integrity.

Risk in the 30 to 35 position portfolio is mitigated by narrowing down the starting universe to a focus list of equities possessing superior balance sheet quality and growth characteristics relative to their mid- and small-cap peers. Portfolio representation in both mid- and small-cap tiers and adherence to a strict sell discipline are other significant risk control features.

2Q18 SMid Cap FactSheet

Small Cap Core Growth Equity

The Small Cap Core Growth portfolio seeks to generate returns above the benchmark Russell 2000 index over a full market cycle with less risk. This is accomplished by purchasing and owning the stocks of 35 to 40 high-quality, small-sized companies (those possessing market capitalizations up to $2 billion) with the intention of holding them for the long term. The portfolio is designed to deliver superior downside protection while fully participating in market rallies.

Companies considered for the portfolio have these characteristics: consistent earnings growth and an EPS growth rate of at least 10%; return on equity of at least 15%; strong balance sheet with the debt/total capitalization ratio not exceeding 35%; and a minimum of 3 years of public financial data.  

The inception date of the Small Cap Core Growth portfolio is September 30, 2003. The investment approach is fundamental after a proprietary, multi-factor front-end analysis is used to narrow a starting universe of about 2,800 stocks to roughly 145 names. The philosophy and approach of Small-Cap are unchanged from its inception.

2Q18 Small Cap FactSheet

All Cap Equity

The All Cap Equity portfolio is a concentrated quantitative all-cap equity strategy which seeks capital appreciation from investments in the common stocks of U.S. and multinational companies with superior financials and rapid earnings growth that have the greatest stock price momentum. A proprietary, multi-factor front-end analysis is used to narrow the starting universe of about 4,700 stocks across the large-, mid-, and small-cap market cap ranges to roughly 525 names. Companies considered for the portfolio must have all of these characteristics: consistent earnings growth and an EPS growth rate of at least 10%; return on equity (ROE) of at least 15%; strong balance sheet with the debt/total capitalization ratio not exceeding 35%; and a minimum of 2 years of public financial data. All-Cap Equity-eligible companies must have 2 years of public data and 1 year of minimum ROE and EPS growth.

A price momentum overlay is then applied, and those stocks whose relative strength is at least in the 80th percentile are selected for the next step. The current price of each of the approximately 30 stocks is compared to their 50- and 200-day moving averages, and names whose prices are above both averages are eligible to be purchased, pending a check on company fundamentals and data integrity.

Risk in the 20-to-25 position portfolio is further mitigated by portfolio representation in all 3 market cap tiers within set ranges and adherence to a strict sell discipline. The philosophy and approach of the All Cap Equity strategy are unchanged from its inception on February 29, 2012. 

2Q18 All Cap Fact Sheet

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CIM, LLC is a registered investment advisor. Firm assets are defined as all accounts under the advisement of CIM, LLC. CIM, LLC reviews firm assets and, on a sample basis, selects account and confirms that the values included for these accounts include only the assets under CIM, LLC's management. Additionally, CIM, LLC completes periodic reviews of firm assets to ensure accounts included in firm assets are not included in firm assets more than once.

CIM, LLC claims compliance with the Global Investment Performance Standards (GIPS®). CIM, LLC has been GIPS verified. You can obtain a copy of a compliant presentation by clicking on the “GIPS Annual Disclosure Presentation” link at the bottom of this page.