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Small Cap

Argent’s Small Cap strategy consists of 60 to 80 companies with market capitalizations of less than $3 billion each. Our team initiates positions in companies with equity market capitalizations generally less than the average of the top decile of the Russell 2000® Index, and seeks out-performance relative to the Russell 2000® Index.

Argent’s small cap investment process is a bottom-up fundamental strategy emphasizing valuation and anticipating change in active stock picking. The small cap strategy capitalizes on the intersection of solid valuation, accelerating growth, and catalysts that are not quickly recognized by the investment community. Our disciplined investment process enables us to identify pricing inefficiencies in smaller capitalization companies due to lack of effective research, a stock’s trading liquidity and lower institutional ownership.

The small capitalization strategy is comprised of two distinct investment styles:

  1. Growth, which seeks to identify companies with significantly lower valuations than the average company in the Russell 2000® Index with greater than average sales and earnings growth; and
  2. Value, which seeks to identify companies trading at significant discounts to the average company in the Russell 2000® Index with reasonable appreciation potential and attractive risk/reward characteristics.

The strategy incorporates a broad spectrum of investment opportunities in the small capitalization universe to enhance prospects for performance.