Investment Philosophy: Mid-Cap Value

Our Mid-Cap strategy is unique for the following reasons:

(a) The valuation range for our Mid-Cap universe is broad enough ($1 billion to $12 billion) to achieve diversification by economic sector and capitalization.

(b) We are a true Mid-Cap manager since new purchases occur within the defined capitalization range.

(c) All stocks meet Anchor Capital's defined value criteria at purchase. This not only affords better appreciation potential, but also reduces overall portfolio risk.

(d) All stocks purchased and held are internally researched using a bottom-up philosophy.

(e) Anchor's investment process utilizes modeling and screening of over 2,500 companies. It is continuous and rigorous. It is also robust in the development of new investment opportunities.

(f) Emphasis is placed on investment in growing companies that meet our valuation criteria. This set of valuation criteria includes an analysis of private market values, current net asset values, and an adherence to a maximum PEG ratio of 1.1 (at purchase).

Assets by Class, Capitalization & Style
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Mid-Cap History

Anchor Capital has been using Mid-Cap stocks in its equity portfolios since the inception of the firm in 1983.

Before 1991 there was no index for Mid-Cap. Based upon indices one could only invest in Large and Small-Cap stocks. In 1991 the Russell Mid-Cap Index was created. At that time Anchor was using Large-Cap as well as those stocks that could be classified as Mid-Cap in its equity portfolios.

In 1992, since Anchor was already investing in Mid-Cap stocks, we decided to offer a pure Mid-Cap portfolio based upon our value driven disciplines. This was the beginning of our Mid-Cap discipline.