Due to the strategy’s unique approach, it has historically captured less of the downside of the Russell 2000 Index, while keeping pace on the upside. This incremental outperformance, since inception of the strategy, has resulted in a larger return on a hypothetical portfolio of $10,000 versus both the Russell 2000 Index and the US Small Blend Category.
Source: Morningstar. Data from 1/1/2008-3/31/2019.
The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. It is a subset of the Russell 3000 Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership. The Russell 2000 Index is constructed to provide a comprehensive and unbiased small-cap barometer and is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set.
Morningstar US Small Blend Category is defined as small-blend portfolios that favor U.S. firms at the smaller end of the market-capitalization range. Stocks in the bottom 10% of the capitalization of the U.S. equity market are defined as small cap. The blend style is assigned to portfolios where neither growth nor value characteristics predominate. Indexes are unmanaged and it is not possible to invest directly in an index.
Past performance is not indicative of future results.
361 Capital LLC claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS® standards. 361 Capital has been independently verified for the periods January 1, 2001 through December 31, 2017. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS® standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS® standards. The verification and performance examination reports are available upon request by contacting 361 at email@example.com. Performance shown prior to 11/1/2016 include results achieved by a portfolio management team while it was a part of BRC Investment Management.
1.The Firm, 361 Capital LLC, is an independent investment adviser registered under the Investment Advisers Act of 1940.
2.The 361 U.S. Small Cap Equity Composite was created on October 31, 2016. The composite was previously the BRC Small Cap Concentrated Composite. Performance results prior to 361 Capital LLC’s acquisition of BRC on 10/31/2016 represent accounts managed by the firm’s employees and members who made up substantially all the investment decision makers at BRC. This composite includes all U.S. Small Cap Equity accounts over $100 thousand that have been under management for at least one month. All accounts have target allocations to small-cap securities of at least 90%. Any account that has a cash flow larger than 10% of the composite is removed from the composite. Beginning January 1, 2010 composite policy also requires the temporary removal of any portfolio incurring a significant cash flow larger than 50% of portfolio assets. Beginning January 1, 2013, composite policy requires the temporary removal of any portfolio incurring a significant cash flow larger than 10% of portfolio assets. The temporary removal of such an account occurs at the beginning of the month in which the significant cash flow occurs and the account re-enters the composite in the month following the cash flow or full investment in the strategy. Additional information regarding the treatment of significant cash flows and a complete list and description of firm composites is available upon request by contacting 361 at firstname.lastname@example.org.
3.The benchmark for the composite is the Russell 2000 Index. The benchmark and composite returns include the reinvestment of income, but the composite does not include trading costs, management fees or other costs.
4.All returns are expressed in U.S. dollars.
5.Net-of-fees performance returns are calculated by deducting the actual management fees and trading costs, or a bundled (WRAP) fee, from the gross composite return. Bundled fee accounts make up a portion of the composite for all periods shown, as disclosed above. Wrap fee schedules are provided by independent wrap sponsors and are available upon request from the respective wrap sponsor.
6.The standard management fees range 0.95% to 0.70%. Please refer to the ADV for additional details. In addition to a management fee, some accounts pay an all-inclusive fee to a wrap sponsor which is based on a percentage of assets under management. Along with brokerage commissions, this fee may include portfolio monitoring, consulting services, and custodial services.
7.Composite Internal dispersion is calculated using the asset-weighted standard deviation of all portfolios that were included in the composite for the entire year.
8.Supplemental Information – Gross-of-fees performance returns are presented before management, custodial fees and trading expenses on bundled fee accounts.
9.Performance figures are based upon historical information and do not guarantee future results. Investing involves, risk, including possible loss of principal. Actual results may differ from composite results depending upon multiple factors including the size of the account, investment objectives and restrictions, the amount of transaction and related costs, significant cash flows into or out of the account, and the inception date of the account. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request (email@example.com).