Small Cap Value Strategy

The CQL Small Cap Value strategy identifies significantly undervalued businesses that maintain resilient balance sheets and sustainable cash flow. Avoiding the systemic "value traps" common to passive indexing, we isolate companies with temporary price dislocations but robust pathways to normalization. Through sector-neutral and capital-aligned risk management, our process separates raw beta volatility from genuine, security-driven outperformance.

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CQL Small Cap Value

Key Aspects of Philosophy

  • Alpha: 100% generated through security selection 
  • Risk: Controls through market cap, beta and sector neutral to Russell 2000 Value 
  • Volatility. No macro, timing, or sector rotation

Key Attributes of the Process

  • 15 customized, sector-specific, multi-factor models, which rank stocks against peers
  • Sector, beta and market-neutral
  • Focus on security selection
  • Fundamental review of each holding

Key Performance Targets

  • Alpha: Excess retums over benchmark
  • Batting Average: Outperform in all markets
  • Beta: Risk consistent with the market