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Long-Short Strategy

To estimate intrinsic value, the business must be understandable, and we must be able to reasonably forecast its cash flows. For long positions, we seek businesses trading at a discount to our estimate of intrinsic value with sustainable competitive advantages, conservative balance sheets and management with an ownership mentality. The inverse is often true for our short positions.

Team

Group Item Count: 3
set at runtime

Michael Harrington, CFA

Portfolio Manager

Group Item Count: 3
set at runtime

Nate Palmer, CFA, CPA

Portfolio Manager

Group Item Count: 3
set at runtime

Brian Fontanella, CFA

Portfolio Specialist

Philosophy and process highlights

We aim to identify long positions that outperform the Russell 1000 Index and short positions that underperform the index. Under our intrinsic value philosophy, we:

Treat every investment as a partial ownership interest in that company

Seek to always invest with a margin of safety

Possess a long-term investment temperament

Recognize that market price and intrinsic value tend to converge over a reasonable period of time

Related insights

Long-Short Composite

Returns

Period and Annualized Total Returns (%) As of 31 Jul 2025
Since Inception
(30 Jun 2000)		 20Y15Y10Y5Y3Y1YYTD3MOJul
Gross of Fees 8.68 8.17 9.57 8.65 12.85 11.37 11.52 10.82 8.58 0.99
Net of Fees 7.60 7.09 8.48 7.56 11.72 10.25 10.40 10.17 8.31 0.91
Russell 1000 Index 8.13 10.62 14.40 13.38 15.49 16.94 16.54 8.48 14.25 2.22
60%/40% Blended Index 5.88 7.26 9.28 9.02 10.64 12.23 11.85 6.19 8.87 1.48
Russell 1000 Value Index 7.80 7.99 11.13 9.20 13.18 10.59 8.79 6.61 7.66 0.57
Swipe or scroll right for more data
Period and Annualized Total Returns (%) As of 30 Jun 2025
Since Inception
(30 Jun 2000)		 20Y15Y10Y5Y3Y1YYTD2Q25
Gross of Fees 8.67 8.30 9.80 8.56 12.93 12.54 10.69 9.73 6.31
Net of Fees 7.58 7.22 8.70 7.48 11.80 11.41 9.58 9.18 6.04
Russell 1000 Index 8.07 10.71 14.74 13.35 16.30 19.59 15.66 6.12 11.11
60%/40% Blended Index 5.84 7.31 9.47 8.99 11.08 13.73 11.38 4.64 7.05
Russell 1000 Value Index 7.80 8.11 11.57 9.19 13.93 12.76 13.70 6.00 3.79
Swipe or scroll right for more data

Past performance is not a guarantee of future results. Composite results reflect the reinvestment of dividends, capital gains and other earnings when appropriate. Net returns are calculated by reducing the gross returns by the highest stated fee in the composite fee schedule. Only transaction costs are deducted from gross of fees returns. To view a GIPS Report for all composites, click here.

Calendar Year Returns (%)

Year Gross of Fees Net of FeesRussell 1000 Index60%/40% Blended IndexRussell 1000 Value Index
2024 12.09 10.97 24.51 16.63 14.37
2023 14.27 13.25 26.53 17.82 11.46
2022 -6.92 -7.75 -19.13 -10.86 -7.54
2021 21.40 20.30 26.45 15.35 25.16
2020 1.41 0.50 20.96 13.30 2.80
2019 25.15 24.02 31.43 19.15 26.54
2018 -5.46 -6.31 -4.78 -1.92 -8.27
2017 7.85 6.88 21.69 12.92 13.66
2016 12.34 11.33 12.05 7.33 17.34
2015 0.18 -0.72 0.92 0.75 -3.83
2014 9.24 8.26 13.24 7.86 13.45
2013 23.03 23.91 33.11 18.93 32.53
2012 10.30 9.30 16.42 9.75 17.51
2011 4.84 3.90 1.50 1.22 0.39
2010 1.51 0.60 16.10 9.90 15.51

Statistics

Portfolio Characteristics vs Benchmark1,2 As of 30 Jun 2025

  Long Portfolio Russell 1000 IndexShort Portfolio
Inception 30 Jun 2000 ——
Status Open ——
Median Forward P/E 16.5x 20.0x22.1x
Median Trailing P/E 24.9x 24.5x21.8x
Median Price/Book 3.0x 3.4x5.5x
Median Price/Sales 2.7x 2.9x3.3x
Median Market Cap. $59.4B $15.5B$6.0BB
Weighted Average Market Cap. $569.7B $1,020.4B$32.8B
Portfolio Turnover (5-Year) 52% ——
Upside/Downside Capture Ratio vs Core Benchmark 73%/59% ——
Upside/Downside Capture Ratio vs Value Benchmark 119%/102% ——

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Portfolio

Top Five Long Equity Holdings3 As of 30 Jun 2025

  Sector % of Net Assets
Microsoft Corp. Info. Technology 4.9
Meta Platforms, Inc. (Cl A) Communication Services 4.4
Citigroup, Inc. Financials 4.3
American International Group, Inc. Financials 3.9
Alphabet, Inc. (Cl A) Communication Services 3.8

Top Five Short Equity Holdings3 As of 30 Jun 2025

  Sector % of Net Assets
International Business Machines Corp. Info. Technology (2.4)
Garmin Ltd. Cons. Discretionary (2.0)
Royal Caribbean Group Cons. Discretionary (1.6)
Core & Main, Inc. (Cl A) Industrials (1.5)
Sprouts Farmers Market, Inc. Consumer Staples (1.5)

Sector Allocation4 (%) As of 30 Jun 2025

Long Portfolio
Russell 1000 Index
Short Portfolio

1 Source: FactSet. The Russell 1000 Index is the core benchmark. The Russell 1000 Value Index is the value benchmark. Upside/Downside Capture: Source: eVestment Analytics based on monthly returns from 1 Jul 2000 – 30 Jun 2025. The blended benchmark represents a 60/40 weighted blend of the Russell 1000 Index and the Bloomberg US Treasury Bills 1-3 Month Index.

2 Data, where applicable, is shown gross of fees and should be viewed in conjunction with the net of fee returns included in this document.

3 Securities referenced may not be representative of all portfolio holdings. The reader should not assume that an investment in the securities was or will be profitable.

4 Cash & Other may include cash, treasurys, money market funds and short duration fixed income funds.

Index data source: London Stock Exchange Group PLC. See www.silvercrestjefferson.com/disclosures for index definitions, data sources and other definitions.