361 U.S. Small Cap Equity

While much economic activity appears to conform to the notion that investors behave rationally and efficiently, we believe that human behavior becomes markedly irrational at the confluence of uncertainty, risk, fear and greed. It is at this juncture where we believe opportunities for outperformance exist. It is our goal to predict behavior that impacts the price of securities and capture the associated alpha by forecasting changes in analyst earnings estimate revisions and corporate earnings announcements.

Asset Class

US Small Cap Core Equities

Composite Details

Inception: 12/31/2007
Benchmark: Russell 2000 Index
Number of Securities: 90-110
Maximum Cash: 5%
Position Size: Equal weighted
Strategy Assets: $204M
Vehicles Available: Separate Account, Mutual Fund

Performance

As of 9/30/2017

Please review the Complete Performance Disclosures >


Investment Objective

Seeks to achieve long-term capital appreciation that will exceed the Russell 2000 Index over a three-to-five year time horizon.

Investment Process

Our objective is to identify securities that we expect to provide attractive risk-adjusted relative returns through behavioral valuation techniques. It is our goal to predict and capture alpha based upon favorable earnings announcements or upward earnings revisions.

“Our process attempts to add alpha through stock selection, rather than sector “bets” against the benchmark. Thus, we have established a target number of positions for each of the sectors included in our universe.”

Excess Return and Tracking Error Objectives
Relative to the targeted benchmark over a 3-5 year period. This time horizon is relevant given that this investment process cannot eliminate the possibility of random events driving short-term performance.



Investment Team


John Riddle, CFA
Co-Chief Investment Officer
Investment Experience: 37 Years

  • John is Co-Chief Investment Officer responsible for the design and strategic implementation of 361 Capital’s Long-Only Equity investment approach.
  • He is the author of the foundational academic research that supports these strategies’ investment philosophy and process; John is a core member of the investment team overseeing quantitative research and portfolio risk management.
  • Education: University of Connecticut, MBA
    University of Hawaii, Bachelor of Arts, Finance
  • Professional Affiliations: CFA Institute
    Denver Society of Security Analysts


Mark Jaeger, CFA, CPA
Managing Director, Portfolio Manager
Investment Experience: 31 Years

  • Member of the core investment team since 2003 and responsible for quantitative risk analysis and portfolio management
  • Oversees the equity trading and the portfolio administration process
  • Education: University of Denver, Bachelor of Science, Accounting
  • Professional Affiliations: CFA Institute
    American Institute of Certified Public Accountants
    Colorado Society of Certified Public Accountants