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: 12/31/07
Benchmark: Russell 2000 Index
Number of Securities: 90-150
Maximum Cash: 5%
Position Size: Equal weighted, at cost
Strategy Assets: $170M as of March 31, 2020
Vehicle Available: Separate Account


As of 03/31/20

361 U.S. Small Cap Equity Portfolio Performance 1Q20
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
Chief Investment Officer
Investment Experience: 39 Years

  • John is Chief Investment Officer responsible for managing the investment department, including oversight of strategy development, investment research and portfolio management.
  • He serves as lead portfolio manager of the firm’s behavioral-driven equity strategies, including large cap, mid cap and small cap equity and is the author of the foundational academic research that supports these strategies’ investment philosophy and process.
  • 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: 33 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