Small and Mid Cap Opportunities

Hilton Capital constructed this strategy for serious investors seeking equity exposure in the small and mid cap markets without taking excess risk.
Then we hired one of the best small and mid cap portfolio managers in the nation to run it.

At a Glance

Portfolio Highlights

  • We combine small and mid-cap equities in one portfolio in order to generate returns with lower volatility than a pure small cap strategy.
  • While the process is value oriented we investigate stocks across the spectrum: value, core and growth. The resulting portfolio is one that maps core in profile.
  • Typically we hold between 50 and 75 stocks, with a minimum of 75% of the holdings in the market capitalization range of the primary index, the Russell 2500.
Small and Mid Cap Opportunities Sector Analysis Pie Chart

Small and Mid Cap Strategy

Sector Analysis

 
Communication Services		 2.9%
 
Consumer Discretionary		 8.9%
 
Consumer Staples		 5.6%
 
Energy		 2.3%
 
Financials		 13.2%
 
Healthcare		 10.1%
 
Industrials		 15.7%
 
Information Technology		 16.6%
 
Materials		 10.8%
 
Real Estate		 7.1%
 
Utilities		 4.2%
 
Cash		 2.5%

Source: Indata Portfolio Holdings Report, 12/31/20

Positioning Video - SMID

 

At a Glance

There are several unique aspects to this strategy. But the one familiar note is Hilton’s consistent aversion to volatility. The SMCO Strategy mitigates risk by examining company fundamentals, avoiding declining industries and diversifying the portfolio with more than sixty top performing companies.

The Small and Mid Cap Opportunities Strategy seeks to generate risk adjusted returns over the long-term.
  • An essential element of any equity strategy
  • Built on strong corporate fundamentals, not sectors and trends
  • Focused on returns with less volatility
  • Offers exposure to solid, U.S. based companies
  • Led by experienced, high quality strategy managers

Click here to learn more about Investing in Small and Mid Cap

Throughout his career as a portfolio manager, Thomas Maher has been attracted to value but, more focused on a rigorous examination of company fundamentals. He attributes his long-term success in small and mid cap investment strategies to “rigorous research and a disciplined approach.” These characteristics demonstrate great philosophical alignment between Mr. Maher and the Hilton Capital investment team.

“Managing between 50 and 75 positions,” explains Maher, “is intense but I’ve found it to be a sweet spot. It’s narrow enough to allow for incredible depth of insight and knowledge into all of our key positions and broad enough to shed risk through diversification.”

The Small and Mid Cap Opportunities Strategy appeals to investors seeking exposure to small and mid cap equities, where diversification is critical but is not determined by index weights. The portfolio is comprised of dynamic companies from all sectors of the economy. The ability to consistently execute at a high level, outperform its peers and generate cash are all hallmarks of the equities we select.

Hilton_Small_and_Mid_Cap-2
Thomas B. Maher
 —
Portfolio Manager
Thomas Maher

We look to participate in up markets and protect the downside in more challenging periods. The ability to critically assess business models is essential to success over a whole market cycle.

Thomas Maher joins Bill Garvey, Craig O’Neill, Alexander Oxenham and Tim Reilly on the Hilton Investment team and serves as Portfolio Manager for the Small and Mid Cap Opportunities Strategy. Contact Hilton Capital Management today to consult with or book a member of our investment team for a conference or speaking engagement.

1010 Franklin Avenue, Suite 300A
Garden City, NY 11530
(516) 693-5380
info@hiltoncm.com

Hilton Capital Management (“HCM” or the “Firm”) is a registered investment adviser with its principal place of business in the State of New York. HCM and its representatives are in compliance with the current registration requirements imposed upon registered investment advisers by those states in which HCM maintains clients. HCM may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements.
HCM’s website is limited to the dissemination of general information regarding its investment advisory services to United States residents residing in states where providing such information is not prohibited by applicable law. Accordingly, the publication of HCM’s website on the Internet should not be construed by any consumer and/or prospective client as HCM’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. HCM does not provide tax or legal advice. You should contact your tax advisor and/or attorney before making any decisions with tax or legal implications. HCM does not make any representations as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to HCM’s website or incorporated herein, and takes no responsibility therefore. All such information is provided solely for convenience purposes and all users thereof should be guided accordingly. Past performance is no guarantee of future results. Any subsequent, direct communication by HCM with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.
For additional information about HCM, including fees and services, send for the Firm’s Disclosure Brochure using the contact information herein. Please read the Disclosure Brochure carefully before you invest.
Copyright 2021 Hilton Capital Management. All rights reserved.