Strategy

QM US Small-Cap Growth Equity

The QM US Small-Cap Growth Equity Composite seeks long-term capital appreciation primarily through investment in small- cap companies with potential for above-average earnings growth. The strategy applies quantitative and active management techniques to achieve its investment objectives.

3YR Return Annualised (Net)
(View Total Returns)

Tracking Error
(5 Years)

10.06%
3.93%

1YR Return (Net)
(View Total Returns)

Information Ratio
(5 Years)

10.14%
0.21

Inception Date 30-Apr-1997

Performance figures calculated in USD

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Sudhir Nanda, CFA, Ph.D.
Sudhir Nanda, CFA, Ph.D., Portfolio Manager

Sudhir Nanda is a portfolio manager in the U.S. Equity Division. He is president of the Investment Advisory Committees of the QM US Small-Cap Growth Equity, QM US Small & Mid-Cap Core Equity, and QM Global Equity Strategies and is a member of the U.S. Equity Steering Committee. Sudhir also is a vice president of T. Rowe Price Group, Inc.

 

Strategy

Investment Approach

  • Identify stocks using a proprietary quantitative stock selection model with a focus on the following characteristics:
    • Attractive valuations relative to the small-cap growth universe as a whole and to other firms within the same industry
    • Judicious capital allocation that benefit shareholders
    • Good earnings quality and profitability
    • Positive price momentum and estimate revisions
  • While stock selection is based on a quantitative model, we do take into consideration the fundamental research conducted by T. Rowe Price’s equity analysts.
  • Investing in small companies involves greater risk than is customarily associated with larger companies, since small companies often have limited product lines, markets, or financial resources.

Portfolio Construction

  • Well-diversified portfolio with approximately 300 securities. Typically the goal is to outperform the benchmark by owning a large number of good stocks instead of making large investments in a small number of stocks.
  • Positions typically range from 0.20% to 1.00%.
  • In general, sector allocations will be fairly consistent with those of the MSCI benchmark.
  • Fully invested with cash typically less than 1%, primarily for transactional needs.

Holdings

Total
Holdings
288
Largest Holding Generac Holdings 1.27% Was (30-Jun-2020) 0.74%
Other View Full Holdings Quarterly data as of 30-Sep-2020
Top 10 Holdings 9.69% View Top 10 Holdings Monthly data as of 30-Sep-2020

Top Purchase

TopBuild
0.76%
Was (30-Jun-2020) 0.22%

Top Sale

Horizon therapeutics
0.58%
Was (30-Jun-2020) 1.13%

Quarterly Data as of 30-Sep-2020

Sectors

Total
Sectors
11
Largest Sector Health Care 27.38% Was (30-Jun-2020) 28.59%
Other View complete Sector Diversification

Monthly Data as of 30-Sep-2020

Benchmark: MSCI US Small Cap Growth Index

Largest Overweight

Health Care
By1.24%
Portfolio 27.38%
Benchmark 26.14%

Largest Underweight

Financials
By-0.72%
Portfolio 4.77%
Benchmark 5.49%

Monthly Data as of 30-Sep-2020

Team (As of 01-Oct-2020)

Sudhir Nanda, CFA, Ph.D.

Sudhir Nanda is a portfolio manager in the U.S. Equity Division. He is president of the Investment Advisory Committees of the QM US Small-Cap Growth Equity, QM US Small & Mid-Cap Core Equity, and QM Global Equity Strategies and is a member of the U.S. Equity Steering Committee. Sudhir also is a vice president of T. Rowe Price Group, Inc.

Sudhir’s investment experience began in 1999, and he has been with T. Rowe Price since 2000, beginning in the U.S. Equity Division. Prior to this, Sudhir was employed by Pennsylvania State University as an assistant professor of finance. He also was employed by Tata Steel in India in financial and general management positions. 

Sudhir earned a B.A., with honors, in mathematics from St. Stephen's College in Delhi, India; an M.B.A. from the Indian Institute of Management in Calcutta, India; and a Ph.D. in finance from the University of Massachusetts, Amherst. He also has earned the Chartered Financial Analyst® designation. Sudhir served on the Financial Accounting Standards Board's User Advisory Council and has had several articles published in the areas of investments, mergers and acquisitions, and international finance. His papers have appeared in The Journal of Portfolio Management, Financial Management, and the Handbook of Equity Style Management.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

  • Portfolio manager
    since
    2006
  • Years at
    T. Rowe Price
    20
  • Years investment
    experience
    21
Brian Dausch, CFA

Brian Dausch is a portfolio specialist in the U.S. Equity Division of T. Rowe Price. He is a member of the Global Natural Resources Equity, US Mid-Cap Growth Equity, US Small-Cap Growth Equity, QM US Small-Cap Growth Equity, and Health Sciences Strategy teams, working closely with institutional clients, consultants, and prospects. Mr. Dausch is a vice president of T. Rowe Price Group, Inc.

Mr. Dausch has 22 years of investment experience, 21 of which have been at T. Rowe Price. He joined the firm in 1998; prior to his current position, he managed the U.S. Equity Portfolio Analysis Group. Mr. Dausch also served as an associate research analyst in the U.S. Equity Division in health care, specializing in biotechnology and pharmaceutical company research.

Mr. Dausch earned a B.S. in business administration, with a concentration in finance, from the University of Delaware. He also has earned the Chartered Financial Analyst designation.

  • Years at
    T. Rowe Price
    21
  • Years investment
    experience
    22

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GIPS® Information

T. Rowe Price ("TRP") claims compliance with the Global Investment Performance Standards (GIPS®). TRP has been independently verified for the twenty one- year period ended June 30, 2017 by KPMG LLP. The verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.

TRP is a U.S. investment management firm with various investment advisers registered with the U.S. Securities and Exchange Commission, the U.K. Financial Conduct Authority, and other regulatory bodies in various countries and holds itself out as such to potential clients for GIPS purposes. TRP further defines itself under GIPS as a discretionary investment manager providing services primarily to institutional clients with regard to various mandates, which include U.S, international, and global strategies but excluding the services of the Private Asset Management group.

A complete list and description of all of the Firm's composites and/or a presentation that adheres to the GIPS® standards are available upon request. Additional information regarding the firm's policies and procedures for calculating and reporting performance results is available upon request

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