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For purposes of this Website, the term "Institutional" includes but is not limited to sophisticated non-retail investors such as investment companies, banks, insurance companies, investment advisers, plan sponsors, endowments, government entities, high net worth individuals and those acting on behalf of institutional investors. The Website contains information, material and content about RBC Global Asset Management (collectively, the “Information”).

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We believe that by investing in small cap companies that demonstrate long-term attractive business fundamentals, near-term profitability improvement potential, strong finances, capable management, and attractive/low valuation the Small Cap Value strategy can produce superior investment returns and risk control over time.


Strategy overview

Belief that strong absolute risk-adjusted returns can be generated over time by investing in neglected companies with:

  • Sound long-term business fundamentals
  • Near-term profitability improvement
  • Low valuations at the time of purchase

Approach

Investment process

  • Begin with universe of approximately 1,500 publicly traded companies with market capitalizations within the range of the Russell 2000 Value Index
  • Intelligence pool includes more than 1,000 face-to-face company meetings per year
  • In-depth and rigorous long-term fundamental research drives security selection

Portfolio construction

  • Well-diversified portfolios holding 70-100 issues
  • Majority of returns sought from stock selection
  • Maximum in a single security: 5%
  • Maximum in a single sector: 2x Russell 2000 Value Index weight
  • Fully invested in equities – no market timing
  • Low portfolio turnover: 30-50%

Additional information

Primary benchmark
Russell 2000 Value Index
Vehicle
Segregated Fund, Separate Account, U.S. Mutual Fund, Canadian Mutual Fund

Related documents

Portfolio managers

Investment team

​RBC U.S. Value and Core Equity team

A focus on best ideas stock selection in U.S. small and mid-cap core and value businesses

Connect with our team to learn more

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