Bridge City Capital Microcap

Objective: To outperform the Russell Microcap benchmark by 150 to 200 bps annualized, over a normal market cycle, gross of fees.

Our Microcap strategy (MC) is focused on investing in quality companies with market capitalizations comparable to the Russell Microcap Growth benchmark. This strategy uses the Bridge City investment process which looks for proven track records, strong financial characteristics, and above-average growth prospects at attractive valuations. We believe this quality-centric strategy will lead to strong relative returns over the long run.

Bridge City's investment process provides a disciplined framework to guide investment decisions. It helps us identify high-quality microcap companies by measuring and assigning numerical values to each company's qualitative characteristics, growth & profitability metrics, and financial strength. Valuation is assessed using internally developed earnings projections. Resulting scores help avoid story stocks with flawed fundamentals and gauge a company's relative attractiveness against its peers to identify the highest quality companies trading at attractive valuations.

Our MC strategy is long only. Portfolio construction aims to find high quality companies and to generate relative performance from stock selection by being fully invested in these companies early in their growth lifecycle.

Attractive Track Record
Down Market Protection
Lower Volatility
Lower Turnover
 

Strategy

  • Benchmark: Russell Microcap Growth Index

  • Inception: January 1, 2022

  • Vehicles:

    • Separate accounts

Portfolio Construction

  • Fully Invested: <5% Cash

  • Concentrated: 30-45 stocks

    • Small Cap Growth strategy highest conviction names.

    • Position size: approximately 1.5% to ≤ 5.0%

  • Market caps bracketing the benchmark

Top 10 Holdings

  • Top ten positions represent approximately 40% of portfolio

Additional Information
Disclosures

Vehicles: separately managed accounts

Minimum separate account investment:  $500 Thousand

Specific holdings, industry weightings, investment returns, and other portfolio characteristics will vary.  Clients should rely on the quarterly reports provided by BCC for information relating to a specific account.  Our standard fee schedule, privacy notice, as well as other information about our business is contained in our Form ADV Part 2A and available upon request. The Form CRS, Customer Relationship Summary explains the investment services BCC provides, how our fees are calculated, potential conflicts of interest and other related topics. Information regarding our investment personnel is available in our Form ADV Part 2B.