- Utilize a bottom-up approach to identify mid-cap companies that are inefficiently priced.
- Focus on companies with established franchises, strong market position, seasoned management team, healthy financial position, room for improved financial performance, and hidden assets.
- Leverage T. Rowe Price’s proprietary fundamental research to evaluate investment risks and opportunities.
- Determine valuation – both on an absolute basis and relative to peers and company history.
- Ensure that each investment’s potential rewards outweigh risks.
- Employ a patient, long-term approach to fully exploit valuation anomalies.
- Typically 110-130 stock portfolio
- Individual position sizes typically range from 0.30% to 2.00%
- Sector weights typically vary from 0.33X to 2.5X relative to the Russell Midcap Value Index
- Reserves of less than 10% typically