Strategy

US Small-Cap Core Equity

The US Small-Cap Core Equity Composite seeks long-term capital growth primarily through investment in stocks of small companies believed to offer growth potential or be under-valued.

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

Tracking Error
(5 Years)

9.28%
3.71%

1YR Return (Net)
(View Total Returns)

Information Ratio
(5 Years)

-0.40%
1.51

Inception Date 31-Dec-1995

Performance figures calculated in USD

Other Literature

Frank M. Alonso
Frank M. Alonso, Portfolio Manager

Frank Alonso is a portfolio manager in the U.S. Equity Division. He manages the US Small-Cap Core Equity Strategy, including the Small-Cap Stock Fund for which he is chairman of the Investment Advisory Committee. In addition, he is an Investment Advisory Committee member of the US Small-Cap Growth II Equity and Balanced Fund Strategies. He also is a vice president of the Spectrum Funds. Frank is a vice president of T. Rowe Price Group, Inc.

 

Strategy

Investment Approach

  • Focus on companies within or below the market-cap range of the Russell 2000 Index at time of purchase.
  • Assess valuation using relevant sector/industry metrics — absolute and relative price to earnings, price to cash flow, and price to assets.
  • Integrate fundamental research to discover underfollowed companies possessing clear business plans, financial flexibility, and proven management teams.
  • Identification of a “value creation” catalyst is key.
  • Broadly diversify holdings to manage portfolio risk profile.
  • Employ a low turnover and patient trading strategy to promote full value realization.

Portfolio Construction

  • Typically 275-300 securities
  • Position sizes typically range between 0.15% and 2.50%
  • Primary sector weights vary from 0.5X to 2.0X, relative to Russell 2000 Index weight

Holdings

Total
Holdings
309
Largest Holding Quidel 1.71% Was (31-Mar-2020) 1.17%
Other View Full Holdings Quarterly data as of 30-Jun-2020
Top 10 Holdings 12.58% View Top 10 Holdings Monthly data as of 30-Jun-2020

Top Purchase

Essent
0.47%
Was (31-Mar-2020) 0.23%

Top Sale

Toro
0.37%
Was (31-Mar-2020) 0.81%

Quarterly Data as of 30-Jun-2020

Sectors

Total
Sectors
11
Largest Sector Health Care 20.86% Was (31-Mar-2020) 18.57%
Other View complete Sector Diversification

Monthly Data as of 30-Jun-2020

Benchmark: Russell 2000 Index

Top Contributor^

Information Technology
Net Contribution 1.27%
Sector
0.03%
Selection 1.24%

Top Detractor^

Industrials & Business Services
Net Contribution -1.44%
Sector
0.03%
Selection
-1.48%

^Relative

Quarterly Data as of 30-Jun-2020

Largest Overweight

Consumer Staples
By1.06%
Portfolio 4.40%
Benchmark 3.34%

Largest Underweight

Financials
By-1.90%
Portfolio 14.50%
Benchmark 16.40%

Monthly Data as of 30-Jun-2020

Team (As of 01-Oct-2020)

Frank M. Alonso

Frank Alonso is a portfolio manager in the U.S. Equity Division. He manages the US Small-Cap Core Equity Strategy, including the Small-Cap Stock Fund for which he is chairman of the Investment Advisory Committee. In addition, he is an Investment Advisory Committee member of the US Small-Cap Growth II Equity and Balanced Fund Strategies. He also is a vice president of the Spectrum Funds. Frank is a vice president of T. Rowe Price Group, Inc.

Frank’s investment experience began in 2000 when he joined T. Rowe Price, beginning in the U.S. Equity Division. Prior to this, Frank was employed by Morgan Stanley as an assistant to several financial advisors. 

Frank earned a B.S. in economics from Miami University in Oxford, Ohio.

  • Portfolio manager
    since
    2016
  • Years at
    T. Rowe Price
    20
  • Years investment
    experience
    20
Michele A. Ward, CFA

Michele Ward is a portfolio specialist in the U.S. Equity Division. She acts as a proxy for equity portfolio managers with institutional clients, consultants, and prospects and supports the U.S. small- and mid-cap equity strategies and the Global Real Estate Equity and US Real Estate Equity Strategies. She also is a vice president of T. Rowe Price Group, Inc.  

Michele’s investment experience began in 1983, and she has been with T. Rowe Price since 2014, beginning in the U.S. Equity Division. Prior to this, Michele was employed by Hewitt EnnisKnupp as an associate partner, where she advised and educated plan sponsor investment committees on investment policy, plan structure, and regulatory and fiduciary issues.  

Michele earned a B.A., magna cum laude, in political science from Yale University and an M.B.A. from the Yale School of Management. She also has earned the Chartered Financial Analyst® designation. 

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

  • Years at
    T. Rowe Price
    6
  • Years investment
    experience
    37

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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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