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Micro Cap Strategy

We are long-term, intrinsic value investors who treat each share of stock as a true ownership interest. We look to buy what we believe are good businesses we can understand at a discount to our estimate of intrinsic value.

Composite Fact Sheet
All strategy documents
Learn more about our approach

Team

Group Item Count: 3
set at runtime

John Loesch, CFA

Portfolio Manager

Group Item Count: 3
set at runtime

Ethan Wallace, CFA

Portfolio Manager

Group Item Count: 3
set at runtime

Tyler Ventura, CFA

Portfolio Manager

Philosophy and process highlights

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

Micro Cap Composite

Returns

Period and Annualized Total Returns (%) As of 31 Jul 2025
Since Inception
(30 Sep 2021)		 3Y1YYTD3MOJul
Gross of Fees 17.66 25.96 22.08 11.56 31.90 3.37
Net of Fees 15.18 22.94 18.81 9.93 30.23 2.80
Russell MicroCap Index -1.24 5.95 3.48 0.95 18.47 2.08
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Period and Annualized Total Returns (%) As of 30 Jun 2025
Since Inception
(30 Sep 2021)		 3Y1YYTD2Q25
Gross of Fees 17.05 27.62 28.18 7.92 26.60
Net of Fees 14.69 24.78 23.65 6.93 25.61
Russell MicroCap Index -1.80 8.61 13.40 -1.10 15.51
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 Returns1 (%)

Year Gross of Fees Net of FeesRussell MicroCap Index
2024 28.27 23.63 13.70
2023 28.98 26.50 9.33
2022 -9.30 -9.83 -21.96
2021 11.44 10.90 -2.66

Statistics

Portfolio Characteristics vs Benchmark2,3 As of 30 Jun 2025

  Micro Cap Composite Russell MicroCap Index
Inception 30 Sep 2021 —
Status Open —
Median Forward P/E 19.0x 15.0x
Median Trailing P/E 18.2x 15.1x
Median Price/Book 1.7x 1.4x
Median Price/Sales 1.6x 2.0x
Minimum Market Cap. $30.0 —
Maximum Market Cap. $3.1B $8.8B
Median Market Cap. $328MM $210MM
Weighted Average Market Cap. $610MM $720MM
Median Price/Cash Flow $13.2x $9.7x
Median LT Debt/Capital $14.8x $5.2x
Portfolio Turnover (1-Year) 47% —

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Portfolio

Portfolio Guidelines

  • Typically 25–40 positions
  • Maximum position size is 15%
  • Top 10 holdings are typically greater than 40% of net assets

Market Capitalization

The portfolio typically invests in companies with a market capitalization below $1.0 billion at the time of purchase.

Top Five Equity Holdings4 As of 30 Jun 2025

  Insider
Ownership (%)		 Sector % of Net Assets
Critical equipment for defense, space, energy and chemical industries 6.5 Industrials 8.1
Manufacturing solutions for the aerospace, defense and industrial markets 7.5 Industrials 7.6
Specializing in precision products in the motion, controls and power quality industries 16.4 Industrials 6.9
Critical infrastructure assets for customers in the transportation, energy and industrial products industries 6.8 Industrials 5.7
Community bank in the mountain west region with wealth management offerings 23.0 Financials 4.7
Total as % of Net Assets — 33.0%
Total number of equity holdings — 31

Sector Allocation5 (%) As of 30 Jun 2025

Russell MicroCap Index

1 20 Sep 2021 - 31 Dec 2021

2 Source: FactSet.

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

4 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.

5 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.