2024-06-03 20:06:50 ET
Summary
- Passively managed FSMD applies a multifactor approach to small- and mid-cap stocks. The factors amalgamated are value, quality, low volatility, and momentum.
- The current iteration of the FSMD portfolio features chiefly mid-cap stocks with healthy value characteristics. Industrials and financials are the top sectors.
- Quality is mostly adequate, yet there are weaknesses on the capital efficiency front.
- Despite compelling factor propositions, its inability to consistently beat IJH, let alone the market, is a problem.
- Owing to performance nuances, I believe FSMD deserves a Hold rating today.
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FSMD: Nicely Balanced Multifactor Approach, Yet Incapable Of Outcompeting The Market