Mid Cap PMV
Superior long-term performance generated by emphasizing business quality and our unique valuation approach.
Mid cap Private Market Value
Superior long-term performance generated by emphasizing business quality and our unique valuation approach.
Quality businesses. Margin of Safety. Performance for the long term.
We combine an up-front quantitative screening process with stock-by-stock fundamental analysis to find companies with sustainable competitive advantages. The anchor in Reinhart Partners’ Mid Cap Value strategy is our proprietary valuation methodology – Private Market Value (PMV).
Mid Cap PMV at a glance
|
Category |
Mid Cap Value Equity |
|
Benchmark |
Russell Midcap Value Index |
|
Inception |
September 30, 1995 |
|
Market Cap Range |
$5 billion to $50 billion |
|
Number of Holdings |
35-45 |
|
Turnover |
35% – 45% |
|
Active Share |
90%+ |
Private market value is the anchor in our strategy. It refers to what an acquirer would be willing to pay per share for the entire company, and is derived by first observing actual takeover valuation multiples. (We use industry-specific metrics to capture appropriate value drivers.)
Stock prices which are more volatile than the underlying value of the franchise create a unique investment opportunity. In this instance, private market value (PMV) becomes the anchor that frames all decisions within an emotional market.
New names are purchased at a 30% discount to PMV, and stocks are sold when they reach PMV. The gap between price and PMV serves as an objective basis to trim or add to existing holdings.
Benefits to our PMV approach
Objective: Measures what buyers will pay for companies
Disciplined: An anchor in the midst of emotional markets
Opportunistic: Takes advantage of market volatility
Custom: Applies a unique value methodology to each sector
Dynamic: Captures changing industry fundamentals and outlook
Strategic: Helps to identify key value drivers for every stock
Our Philosophy
Emphasis on Quality First:
Finding sustainable competitive advantages one stock at a time.
Private Market Value:
Reinhart Partners’ proprietary methodology for determining a company’s intrinsic value.
Positive Risk/Reward:
Protecting capital in tough markets while capturing most of the upside return when stocks advance.
Portfolio Managers
Josh Wheeler, CFA
Lead Portfolio Manager
Matthew Martinek
Co-Portfolio Manager