Mid cap Private

Market Value

Superior long-term performance generated by emphasizing business quality and our unique valuation approach.

Mid cap Private Market Value

Superior long-term performance generated by emphasizing business quality and our unique valuation approach.

Quality businesses. Margin of Safety. Performance for the long term.

 

We combine an up-front quantitative screening process with stock-by-stock fundamental analysis to find companies with sustainable competitive advantages. The anchor in Reinhart Partners’ mid-cap value strategy is our proprietary valuation methodology – Private Market Value (PMV).

Mid cap PMV at a glance


Category

Mid Cap

Benchmark

Russel Mid cap Value Index

Inception

September 30, 1995

Market Cap Range

$3 billion to $30 billion

Number of Holdings

40-50

Turnover

40% – 60%

Active Share

90%+

Private market value is the anchor in our strategy. ​It refers to what an acquirer would be willing to pay per share for the entire company, and is derived by first observing actual takeover valuation multiples. (We use industry-specific metrics to capture appropriate value drivers.)

 

Stock prices which are more volatile than the underlying value of the franchise create a unique investment opportunity. In this instance, private market value (PMV) becomes the anchor that frames all decisions within an emotional market.

 

New names are purchased at a 30% discount to PMV, and stocks are sold when they reach PMV. The gap between price and PMV serves as an objective basis to trim or add to existing holdings.

Benefits to our PMV approach

 

Objective: Measures what buyers will pay for companies

 

Disciplined: An anchor in the midst of emotional markets

 

Opportunistic: Takes advantage of market volatility

 

Custom: Applies a unique value methodology to each sector

 

Dynamic: Captures changing industry fundamentals and outlook

 

Strategic: Helps to identify key value drivers for every stock

Our Philosophy

 

Emphasis on Quality First:

Finding sustainable competitive advantages one stock at a time.

 

Private Market Value:

Reinhart Partners’ proprietary methodology for determining a company’s intrinsic value.

 

Positive Risk/Reward:

Protecting capital in tough markets while capturing most of the upside return when stocks advance.

Portfolio Managers


Brent Jesko

Lead Portfolio Manager

Matthew Martinek, CFA

Co-Portfolio Manager

Additional Information


 

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Mid cap PMV Fact Sheet

Download link coming soon.

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Mid cap PMV Commentary

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