EMERGING MARKETS SMALL CAP EQUITY

The investment objective of the Emerging Markets Small Cap Equity strategy is to outperform the MSCI Emerging Markets Small Cap Index by 2.5 to 3.5% annualized over the long term by utilizing a low turnover, fundamental, bottom-up, relative value approach with a focus on downside protection.

PHILOSOPHY

RVX’s fundamental bottom-up, relative value philosophy is predicated on the assumption that stock prices are more volatile than the underlying intrinsic value of businesses. In effect, a stock should be viewed as a small piece of a business that is for sale.

 

RVX believes the key to investment success is to buy stocks of businesses which have determinable value, but which are unpopular or overlooked at the present time. As such, the objective will be to buy undervalued stocks.

Turkey

PROCESS

Proprietary Database:
  • Ranks undervalued stocks using multi-factor model

  • Approximately 650 stocks by decile monthly

  • Model inputs validated by team

  • Broad industry and country representation

Identify Stocks:
  • Value characteristics

  • No illiquid, highly leveraged, or distressed securities

Decisions:
  • Systematic process

  • Portfolio construction

  • Risk management

  • Weekly investment meetings

Fundamental Analysis:
  • Top 30% of database are buy candidates

  • Focus on sustainable cash flow and dividends

  • Identifiable catalysts for appreciation

  • Analyst recommendation on intrinsic value

Execution:
  • Timing

  • Goal is to minimize trading costs

Emerging Markets Small Cap Equity Profile

Fund Inception 2/28/2017
Strategy Long-only EMSC Equity
Market Cap Small Cap
Vehicle Separate Accounts
Commingled Fund
Benchmark MSCI EMSC Index
Style Relative Value
Holding 50–100
Capacity $1 billion

Emerging Markets Small Cap Fact Sheet

Disclosure

RVX is currently registered as an investment advisor with the SEC. This material is for informational purposes only and represents RVX’s investment opinions and should not be construed as personalized investment advice. RVX cannot assess, verify, or guarantee the suitability of any particular investment to any personal situation and the reader of this material bears complete responsibility for its own investment research and should seek the advice of a qualified investment and/or tax professional prior to making any investment decisions. RVX may only transact business or render personalized advice, and offers of service can only be made, in those states or international jurisdictions where RVX is registered or where an exemption or exclusion from registration is available. Nothing herein is an offer of any service that is not legal for offer into any particular jurisdiction with RVX’s current licensure (if any).