Menu
The Paradice Global Small Mid Cap Strategy was established in August 2010 and is managed by Lead Portfolio Manager, Kevin Beck and Portfolio Manager, Paul Mason. The team is comprised of six investment professionals including Kevin and Paul.
The Strategy aims to outperform its respective benchmark over an economic cycle by investing in well-capitalized, competitively advantaged businesses the team believes are undervalued relative to the quality of the enterprise. The Strategy typically invests in 50-70 securities, is unconstrained regarding allocations to countries or industries, and is benchmark agnostic.
The team believe minimizing downside in volatile markets is critical in positioning the strategy to have the opportunity to compound investor capital when markets recover. They intend for this combination of undervaluation and thoughtful risk management to create the opportunity for double digit compounding and outperformance of the benchmark over longer time horizons.
Strategy characteristics, including allocations are those of a representative account, and are provided for informational purposes only as of the date shown only. Actual characteristics and allocations may vary significantly over time. Active Share is a statistic used to measure the percentage of the portfolio that differs from a benchmark index (MSCI ACWI SMID Cap Net Total Return Index in this instance), with 100% implying no overlap with the benchmark and 0% implying total overlap.
The team aims to capitalize on inefficiencies in the global small mid cap space by uncovering competitively advantaged businesses trading at substantial discounts to their determination of intrinsic value. Employing a fundamental, bottom-up investment process, they construct a portfolio of 50-70 global businesses characterized by enduring business models, sound balance sheets, and adept management. Their approach is benchmark agnostic. And while country and sector allocations are largely the outcome of the team’s stock selection process, the portfolio managers consciously diversify across geographies and industries.
The team invests with a long-term view with a business owner mentality, seeking involvement to influence outcomes, and will proactively pursue dialogue with portfolio companies. Engagement on perceived risks and opportunities supports their objective to grow intrinsic value while thoughtfully managing risk.
The global small/mid cap space is vast and relatively under-researched by both buy-side and sell-side participants, leading to market inefficiencies and the potential for attractive investment opportunities.
Global small and mid cap equities, in the team’s view, offer numerous potential benefits for capital allocators including diversification, alpha generation opportunities for active managers, and the potential for attractive investment returns. Historically, small cap equities have outperformed their larger cap peers, particularly when investing in portfolios of quality, undervalued small/mid cap businesses.
Kevin joined Paradice in 2009. Prior to joining Paradice he was a Senior Analyst on the Artisan Partners International Value and Global Value investment funds. Prior to Artisan, he was Co-Portfolio Manager of the Denver Investment Advisers International Small Cap Equity Fund. He has also worked at Harris Associates and JPMorgan/Fleming. Kevin has over 31 years’ investment experience in the US, UK and Brazil. He is a CFA® charterholder and has an MS in Finance from the University of Wisconsin.
Paul joined Paradice in February 2010 as a Trader working closely with the Australian Small Cap Team. In 2013 Paul relocated to the US in the role of Analyst for the Global Small Mid Cap Strategy, subsequently taking on a portfolio management role in 2019. Prior to Paradice, he was employed at KPMG in the Business Advisory and Taxation division. Paul has over 14 years of experience in the asset management industry. Paul holds a Commerce degree with majors in Accounting, Finance and Business Law from the University of Wollongong, Australia.
Paradice Investment Management, LLC offers the investment strategies discussed here in the form of institutional separately managed accounts. Information and strategies discussed here are intended for institutional investors only and are strictly for illustrative and educational purposes and are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. There is no guarantee that any strategies discussed will be effective. Past performance does not guarantee future results. All investments carry inherent risks, and while there is the possibility for investment gains, there is also the possibility of investment loss.
Copyright © 2024 Paradice Investment Management LLC
The information provided herein is designed for institutional investors, consultants, and investment professionals. The content of this website is provided for informational purposes only, without regard for the financial objective or specific needs of any investor and does not constitute an offer to sell or buy any securities and may not be used or relied upon in connection with any offer or sale of securities. Those who are not considered an institutional investor or person acting on behalf of an institutional investor should not review or act upon the information provided via this site. Information contained on this website is not intended for any jurisdiction in which distribution is not authorized under applicable law nor are the materials intended for distribution to the general public in any jurisdiction.
By clicking on “I Agree”, you represent and certify that you meet the investor category for which this website has been created and acknowledge that you understand and agree to be bound by the Terms and Conditions of this website.
Wrong site? If you are looking for Paradice’s website for Australian-based individual investors or financial advisers please click here.
Important Legal Information: By clicking on “I Agree,” the user agrees that they have read the terms detailed above and confirm that they are an Institutional Investor and wish to proceed.