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U.S. Small & Mid-Cap Equity

Wilby Securities’ ("WS") Small-to Mid-Cap Equity strategy focuses on investing in a carefully selected group of small- and mid-cap companies that are currently out-of-favor or under-followed. We do not use leverage or shorting in this strategy. Typically, we invest in eight to 15 companies with a long-term horizon of three to five years. Our investments are usually sold if they appreciate above our estimated intrinsic value*.

We follow a disciplined investment process and employ stringent criteria to identify well-positioned companies trading at a significant discount to our estimate of intrinsic value. Each portfolio company undergoes extensive due diligence, and we concentrate our investments in industries we thoroughly understand, such as information services and software, outsourced business services, cable television and programming, manufacturers or distributors of consumer products, and financial services. We maintain active communication with the company’s management team and industry participants after making an investment.

Investment Criteria

We believe that companies possessing the following business, management, financial, and valuation attributes are well-positioned to create value for shareholders across different economic and market conditions.

Business Attributes

  • Essential products and services
  • High customer loyalty
  • Sustainable competitive advantages
  • High levels of recurring revenues
  • High returns on invested capital

Management Attributes

  • Strong operators with integrity
  • Favorable capital allocation

Financial Attributes

  • Strong balance sheet and free cash flow

Valuation Attributes

  • Intrinsic value* determined through conservative forecasts

*WS’s estimate of the present value of the cash that a business can generate and distribute to shareholders over its remaining life.
-The strategy may assume large positions in a small number of issuers, which can increase the potential for greater price fluctuation.
-Investing in small or medium-sized companies typically exhibits greater risk and higher volatility than larger, more established companies.