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.