Since 1974, Brandes Investment Partners® has used the value approach in seeking to generate strong returns in the various equity markets in which it participates. Our U.S. Small Cap Value Equity Portfolio is dedicated solely to the small-cap segment of U.S. markets.
Our value approach to equity selection is a conservative strategy that requires an investor to have a three- to five-year outlook. Historically, small-cap stocks have offered greater returns than larger-cap stocks. However, markets for small-cap securities may be more volatile and less liquid than those for larger companies. Investors should carefully consider these risks in the context of their overall objective, time horizon, and asset allocation prior to investing.
Our U.S. Small Cap Value Equity Portfolio applies a Graham & Dodd value approach to stock selection. Generally, securities will be bought if they are trading below what we believe is their intrinsic value. This conservative approach strives to provide investors with a margin of safety. In addition, small companies tend to attract less coverage by research analysts than large companies. As a result, there is a greater possibility for us to take advantage of unrecognized investment opportunities.
For a more complete description and discussion of applicable risks, consult Brandes' Form ADV, Part 2A.