Investment Approach

  • 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.

Portfolio Construction

  • 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