Strategy Overview

Investment Approach

We are fundamental bottom-up stock pickers who invest for the long term. We believe that the best strategy for investment success is investing in high-quality, well-managed small-cap companies that are trading below their intrinsic value.

We look for companies with:

  • Outstanding management teams
  • Sustainable competitive advantage(s)
  • Strong operating cash flows
  • High returns on capital
  • Stock trading below intrinsic value
  • Consistent long-term growth prospects
Our biggest advantage is the depth of knowledge we develop on our investments.
About the Portfolio
Investment Style Core
Process Fundamental Bottom-up
Turnover Low
Minimum Initial Investment $1 million
Reasons to Invest
  • Experienced investment team with unique and focused expertise in the management of small-cap strategies
  • Higher return and lower volatility versus the benchmark
  • Rigorous investment process with a hands-on approach ensuring strong practices
  • Deep knowledge of companies and superior access to their management
  • ESG factors reviewed and analyzed as part of a robust fundamental research process
  • 100% owned by its employees, aligning our interests with those of our clients
Documents
Strategy Profile
US Smid Fact Sheet 2023 Q4

Key Characteristics

Sector Allocation (%)
Top Five Stocks %
Security Sector Weight
Hamilton Lane Inc. Financials 3.0
Houlihan Lokey Inc. Financials 3.0
Bank OZK Financials 2.9
Ensign Group Inc. Health Care 2.9
PTC Inc. Information Technology 2.9
Key Financial Characteristics
Market Cap (weighted average) $6,376M
FY1 P/E (median) 21.5 x
ROE (tr. 12M, median) 14.3%
ND/EBITDA 1.2 x
Downside capture 89
Upside capture 96

Strategy Performance in Various Environments

The strategy outperformed its benchmark in a wide variety of market environments over the past 4 years. This was achieved through consistent positioning into attractively valued, high-quality companies, and a balance between high-quality defensive stocks and high-quality growth cyclical stocks at an attractive valuation.

Performance (%) in U.S. dollars

Per period and calendar year performance

Period Van Berkom Russell 2500 Value Added
2023 21.15 17.42 3.73
2022 -18.66 -18.37 -0.29
2021 16.07 18.18 -2.11
2020 17.25 19.99 -2.74
2019 29.49 27.77 1.72
2018 -2.65 -10.00 7.35
2017 6.72 5.24 1.48

Past performance is not a guarantee or indicator of future results. Inherent in any investment is the risk of loss. Composite returns are calculated using the time-weighted method and presented gross of management and trustee fees and withholding taxes.

In U.S. dollars, as at December 31, 2023 (%)

Annualized Performance

Period Van Berkom Russell 2500 Value Added
1 Year 21.15 17.42 3.73
2 Years -0.73 -2.10 1.37
3 Years 4.58 4.24 0.34
4 Years 7.61 7.98 -0.37
5 Years 11.67 11.67 0.00
SI 9.90 8.29 1.61

Past performance is not a guarantee or indicator of future results. Inherent in any investment is the risk of loss.
Composite returns are calculated using the time-weighted method and presented gross of management and trustee fees and withholding taxes.
SI = Since inception


Portfolio Management Team

Team Member* Role In the Industry Since
Owen Gibbons Lead Portfolio Manager 1998
Mathieu Sirois Senior Portfolio Manager 2000
Ammar Ali Senior Analyst 2005
Alexandre Innes Senior Analyst 2014
Julien Cicci Senior Analyst 2015

* All team members are also Van Berkom and Associates Inc. shareholders.

Learn more about our investment approach

Approach

Disclaimer

Van Berkom and Associates Inc. (“Van Berkom”) is registered in Canada with the Autorité des marchés financiers (“AMF”), the Ontario, Alberta, British Columbia and Manitoba Securities Commissions as Portfolio Manager and as Investment Fund Manager. In the United States, Van Berkom is defined as a Securities Exchange Commission (“SEC”) registered independent investment advisor. The information provided herein is for informational purposes only and is not intended to provide professional advice and should not be relied upon in that regard. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. There is no representation or warranty as to the current accuracy of, nor liability for, decisions based on such information. Past performance is no guarantee of future results. Performance is presented gross of all management fees. Van Berkom claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. Important information about Van Berkom, including a GIPS® Composite Report and additional information regarding policies for calculating and reporting returns, may be obtained from Van Berkom by communicating with Andy Kong, Senior Director, Institutional Markets at akong@vanberkomglobal.com.

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