Areté Mid Cap Core
Strategy Outline

Investment Opportunity Set  

1,500 companies
11 economic sectors

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Active Risks

800 Russell Mid Cap companies + 700 companies with a market cap in the same range
Russell economic sector classifications

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Relatively concentrated
Construction/performance benchmark
Tracking error: expected range
Sector weights

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45 to 65 holdings
Russell Mid Cap Index

5% to 7%
50% to 150% of benchmark sector weight, 0% to +2% of benchmark sector weight for smaller sectors

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Factors and characteristics

Sector
Size

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Management style

No permanently excluded sectors
$1 billion to $20 billion (at time of purchase)

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Decision-making
Research
Investment style (i.e. growth, value)
Turnover

Single decision-maker for portfolio
Team-based, collaborative
Based upon differential between intrinsic value and market price; no apriori bias to "growth" or "value" styles
Estimated 20% to 40%