Small/Mid Cap Core

Smaller, less visible companies with unique business concepts or niche products are often reasonably priced and ripe for growth. Eagle's Small/Mid Cap Core team views investment decisions as if we were private buyers of a company. In other words, we want to own businesses (not just their numbers), which means focusing on firms that maintain sustainable competitive advantages within their industry.

Affiliated Mutual Fund

Investment Process
Investment
Team
Performance
Literature

The Eagle Small/Mid Cap Core team identifies investment opportunities based on the following criteria:

Companies with a unique competitive advantage

  • Better use of technology
  • Excellent management
  • High barriers to entry
  • Low-cost producer
  • Industry consolidator
  • Diverse customer base

Growth and value parameters

  • Reasonable price relative to historical valuation
  • Reasonable price relative to takeover valuation
  • High or expanding return on equity
  • High or expanding operating margins relative to peer group

Sell discipline

  • Deterioration of the company’s fundamentals or failure of original thesis
  • Slowing of earnings growth
  • Price appreciates above sustainable level
  • Occupation of too large a portion of total portfolio