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U.S. Small Cap Value Strategy

  • Asset Class Equities

Overview

The GMO U.S. Small Cap Value Equity Strategy seeks to generate total return in excess of its benchmark, the Russell 2000 Value Index, by investing primarily in equities of U.S. companies that are included in the Russell 2000 Index or whose market capitalization at the time of investment is less than that of the 1000 largest publicly held companies.

The Strategy’s investment approach is grounded in the Global Equity team’s belief that, in the short term, equity markets exhibit exploitable inefficiencies as a result of irrational investor actions, the imperfect flow of information, and the participation of non-economic actors, while in the long term returns are ultimately driven by economic reality. The Strategy aims to take advantage of this inefficiency by utilizing a multi-factor valuation model in conjunction with other methods, such as cross-asset signals and corporate alerts, to identify mispriced equity securities.

Facts

Performance

Management

Harris_Simon

Simon Harris

Head of Global Equity (interim)

Mr. Harris is the interim head of GMO’s Global Equity team. In his decades at GMO, Simon has had extensive portfolio management, quantitative research, and team leadership experience including as the head of the UK Equity team prior to its merger with Global Equity. Previously, he also served as co-CEO of GMO UK Ltd. Prior to joining GMO in 1989, he earned his BSc in Mathematics from The City University (London). Mr. Harris is a Fellow of The Chartered Institute for Securities & Investment.

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Josh White

Portfolio Manager

Dr. White is a quantitative analyst for GMO’s Global Equity team. Prior to joining GMO in 2015, he worked at Acadian Asset Management as a senior vice president working on quantitative research and portfolio management across much of their product line. Previously, he worked at the SEC where, in addition to other responsibilities, he was involved with disclosure and governance issues. Dr. White earned his A.B. in Economics from Harvard University and his Ph.D. in Business Economics from Harvard University.

Documents

Risks