U.S. Small Cap Value Equity

The strategy seeks to outperform the Russell 2000 Value Index by investing in a portfolio of stocks with attractive valuation and quality characteristics and improving business momentum or catalysts that can unlock value.*

Strategy highlights

Inception date

March 31, 1993

Benchmark

Russell 2000 Value Index

Total strategy assets

$453.2M

(as of April 2022)

Investment vehicles

  • Separate account
  • Seeks to outperform the Russell 2000 Value Index by investing in a portfolio of what we believe to be attractively valued small-cap U.S. stocks issued by quality companies with improving business momentum or catalysts that may unlock value
  • Focus on bottom-up stock selection, well-diversified portfolios, and downside risk management
  • Seeks to manage risk through security selection, portfolio construction, and liquidity management
  • Portfolio manager and senior analysts with extensive experience working together as a boutique with access to large firm resources

*No assurance can be given that the investment objective will be achieved or that an investor will receive a return of all or part of his or her initial investment. Actual results could be materially different from the stated goals. Investors should carefully consider the risks involved before deciding to invest. As with any investment, there is a potential for profit as well as the possibility of loss.

Assets may include accounts that are not reflected in the composite.

Investment team

Performance

Annualized composite performance (%) as of April 30, 2022

  MTD QTD YTD 1 Year 3 Years 5 Years 10 Years
U.S. Small Cap Value Equity (gross) -7.00% -7.00% -6.33% 3.11% 13.09% 8.43% 11.55%
U.S. Small Cap Value Equity (net) -7.06% -7.06% -6.58% 2.28% 12.18% 7.56% 10.60%
Russell 2000 Value Index -7.76% -7.76% -9.97% -6.59% 8.38% 6.75% 9.81%

Calendar-year composite performance (%) as of April 30, 2022

  2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
U.S. Small Cap Value Equity (gross) 41.26% 4.92% 25.35% -18.78% 9.19% 28.35% -2.97% 4.44% 40.16% 18.49%
U.S. Small Cap Value Equity (net) 40.13% 4.07% 24.35% -19.43% 8.31% 27.31% -3.79% 3.49% 38.75% 17.30%
Russell 2000 Value Index 28.27% 4.63% 22.39% -12.86% 7.84% 31.74% -7.47% 4.22% 34.52% 18.05%

Past performance is not a guarantee of future results. An investment in this strategy could lose value. Most recent month-end performance is preliminary. Returns are subject to change.

Periods less than one year are not annualized. Performance is stated in U.S. dollars and includes the reinvestment of dividends and interest.

Literature

Related topics

Equity Insights

Important disclosures

The Putnam Investments U.S. Small Cap Value Equity Composite (the "Composite") seeks to outperform the Russell 2000 Value Index by investing in a portfolio of stocks with attractive valuation and quality characteristics and improving business momentum or catalysts that can unlock value. The strategy focuses on bottom-up stock selection, well-diversified portfolios, and downside risk management and seeks to manage risk through security selection, portfolio construction, and liquidity management. The Composite's benchmark is the Russell 2000 Value Index. The Composite may contain accounts with different but largely similar benchmarks. Leverage is not utilized in any account in this Composite. However, derivatives (including futures, exchange-traded or OTC options, and swaps) may be used in some portfolios for hedging or non-hedging purposes. The Composite includes all fully discretionary accounts managed by Putnam Investments in this investment style. The Composite may include portfolios with certain existing investment restrictions that the Firm believes do not materially impact the investment strategy. The Composite inception date was March 31, 1993. The Composite creation date was April 1, 1997. Effective January 31, 2019, there was a portfolio manager change for this strategy.

 

The Russell 2000® Value Index is an unmanaged index of those companies in the small-cap Russell 2000® Index chosen for their value orientation.

Gross performance includes the deduction of transaction costs but does not include the deduction of management fees and other expenses that may be incurred in managing an investment account. A portfolio's return will be reduced by advisory and other fees. Net performance reflects the deduction of a model fee applied on a monthly basis, equal to the actual management fee incurred by a portfolio in the Composite or the highest management fee that would be charged to a prospect of the strategy, whichever is higher. The model fee may change over time. Actual advisory fees may vary among clients with the same investment strategy. The Composite includes all actual, fully discretionary accounts with substantially similar investment policies and objectives managed to the Composite's investment strategy. Benchmarks are generally taken from published sources and may have different calculation methodologies, pricing times, and/or foreign-exchange sources from the Composite. The effect of those differences is generally deemed to be immaterial. The securities holdings of the Composite strategy may differ materially from those of the index used for comparative purposes.