Small-Mid Cap
LKCM’s Small-Mid Cap Equity investment strategy is based upon a “core” investment philosophy reflecting the belief that competitively advantaged companies, which typically generate high and/or improving returns on shareholders’ equity, have strong balance sheets, and generate free cash flow, can provide superior rates or return to shareholders over longer periods of time. LKCM believes that its investment strategy adds value by providing a strong foundation of basic philosophical tenets that are expected to lead to the creation of wealth and the management of risk over time.
The overall objective of LKCM’s Small-Mid Cap Equity investment strategy is to generate superior returns relative to the firm’s benchmark while incurring a lower level of risk or volatility. The development of investment opportunities emanates from LKCM’s rigorous, proprietary fundamental research process, which is accomplished by portfolio managers and analysts working together to identify competitively advantaged companies with market capitalizations between $1 billion and $7 billion. The process is comprised of approximately 80% fundamental analysis led by the analysts and 20% macro factor analysis performed by portfolio managers and culminates in a portfolio of approximately fifty small-mid cap stocks.
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