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© 2018 by Oakford Park Capital, Inc.  Proudly created by Modern Consulting 360

Oakford Park Wealth

Small Cap Broad Market Equity Portfolio

Small Cap Broad Market Portfolio IB Asset Management

The Small Cap Broad Market portfolio is a portfolio designed to systematically deliver return and risk characteristics of small cap stocks within the US equity market. The portfolio is implemented using a rules-based approach and offered at a relatively low cost.


Research
The goal is to achieve an alternative risk-return profile, which is more attractive than a simple capitalization-weighted index such as the Russell 2000. The weighting methodology results in a portfolio that has less risk concentration in securities with large price appreciation.


Approach
The portfolio is constructed using a rules-based algorithm to determine position allocations. Allocations are a blend of capitalization weights and equal weights. The portfolio is rebalanced quarterly.


Allocation discipline
The portfolio targets an allocation of 1,000 long positions. The allocations are a blend of equal and capitalization weight. Because of the equal weight component, the portfolio has a larger proportion of smaller companies compared to a purely market capitalization weighted portfolio. The weight allocation in this portfolio makes it less prone to having concentration in bubble stocks that have experienced dramatic price appreciation.

Fact Sheet
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