Mid Cap Value Strategy
We look to remain consistent in our investment style and protect capital by using the time-tested contrarian value approach. The performance target for the Mid Cap Value portfolio is to exceed the Russell Midcap® Value Index over a full market cycle
Our Mid Cap Value strategy is based on a disciplined, low P/E approach to stock selection. We invest in mid cap companies that our research concludes to be undervalued and prove to exhibit strong fundamentals and historic earnings.
The Mid Cap team led by Mark Roach, Portfolio Manager, invests in companies with market capitalizations between $2 billion and $15 billion. The team focuses on eliminating stocks with above-market valuations by comparing financial ratios such as the price-to-earnings, price-to-book and price-to-cash flow.
Through extensive bottom-up research and rigorous fundamental analysis, we form our Mid Cap Value portfolio, which is well diversified across 60-70 companies with the goal of achieving superior long-term performance results while managing volatility and risk.
Mark Roach (Managing Director and Lead Portfolio Manager), Mario Tufano, CFA (Associate Portfolio Manager), David Dreman (Founder, Chairman & Chief Investment Officer).
Inception Date: 12/2003
Mid Cap Value Separate Account Performance
Benchmark:Russell Midcap® Value Index
|Asset-Weighted Returns as of 3/31/2015|
|Last 3 Months||YTD||1 Year||3 Years||5 Years||7 Years||10 Years||Inception 12/31/2003|
|Gross Total Return||1.39%||1.39%||8.44%||16.20%||13.90%||9.52%||9.71%||10.56%|
|Total Return Net of Fees||0.64%||0.64%||5.29%||12.85%||10.61%||6.34%||6.53%||7.35%|
|Index Total Return||2.42%||2.42%||11.70%||18.60%||15.84%||10.94%||9.61%||10.64%|
Definition of the Firm
Dreman Asset Management ("DAM") is a division of Dreman Value Management, L.L.C. ("Dreman"), an independent investment management firm and registered advisor established on July 1, 1997. DAM participates in a number of wrap-fee SMA/UMA sponsor programs with several financial institutions. These institutions provide separately managed account services to their client's.
Historical Mid Cap Value Wrap performance reported through June 20, 2009 is based on the Dreman Contrarian Mid Cap Value Fund, which served as the model for Dreman Mid Cap Value Wrap-fee SMA/UMA accounts. The Dreman Contrarian Mid Cap Value Fund was incepted and created in December 2003. As of June 30, 2009, performance is based on the firm's Mid Cap Value Wrap Model account. Dreman maintains a complete list of products and descriptions for strategies which is available upon request.
Valuations are computed and performance is reported in U.S. Dollars.
The Mid Cap Value Model Account’s primary benchmark is the Russell Midcap® Value Index. The Russell Midcap® Value Index measures the performance of the mid-cap value segment of the U.S. equity universe. It includes those Russell Midcap Index companies with lower price-to-book ratios and lower forecasted growth values. The Russell Midcap® Value Index is constructed to provide a comprehensive and unbiased barometer of the mid-cap value market. The Index is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true mid-cap value market. The market index used herein has been included for purposes of comparison of an investment in the relevant strategy to an investment in a certain well-known, broad-based equity benchmark. The statistical data regarding such index has been obtained from Factset and returns are calculated assuming all dividends and income are reinvested. The volatility of this index may be materially different from that of funds and accounts of DAM. This index is unmanaged, with no fees, expenses or taxes. It is not possible to invest directly in an unmanaged index; however, an individual can invest in exchange traded funds or other investment vehicles that attempt to track the performance of an unmanaged index.
Gross-of-fees performance returns are presented before all management and custodial fees but after all trading expenses. Returns are presented net of non-reclaimable withholding taxes. Returns are presented gross and net of management fees and include the reinvestment of all dividends and income. Net-of-fees performance returns are calculated by deducting the highest wrap sponsor’s bundled fee of 0.75% per quarter, from the quarterly gross representative account return. Actual investment advisory fees incurred by clients may vary. return.
Minimum Account Size
The minimum account size for our Wrap-fee SMA/UMA sponsors is $100,000 USD/$30,000 USD. The Firm has full discretion over all of the client accounts that participate in the SMA wrap programs that the firm is engaged to provide investment advisory services to.
Past performance does not guarantee future results, and periodically, current performance may be lower or higher than the performance data quoted. There is no assurance that any securities discussed herein remain in any fund or account of DAM at the time that you receive this or that securities sold have not been repurchased. All investments involve risk including the potential loss of all principal invested. The investment return and principal value of an account will fluctuate so that a client’s account may be worth more or less than its original value. Actual account performance may differ due to; among other things, the timing of investments and withdrawals, individual account restrictions and limitations and differing tax treatment. To obtain the most recent month-end performance, please contact us at firstname.lastname@example.org or 1.877.830.6004. This material has been prepared for investors and investment professionals, including broker-dealers and investment advisers.