Let's say that you have decided to increase the allocation of your investment assets to small cap value index, funds or stocks. This note is intended to help you implement that decision by providing a list that may be of interest to you for further consideration right now. If so, then read on.
What I have done to create this list is to use a variety of screening tools (including valuation metrics, trend and cyclical analysis) that I have found to be useful when attempting to construct portfolios that out-perform the broader markets on a risk adjusted basis. Think of the securities listed below as a collection of opportunities for you to consider owning, using your own ideas and approaches to investment, that someone else independently agrees with.
(For reference, I did not include the two main ETFs in the small cap value space--IWN (iShares product) and VBR (Vanguard product). These two are also very worthy of consideration. I happen to believe the selections below might perform a little better on average than these other two stalwarts in the space.)
As noted below, I own many of the names on the list already and may consider adding any of them in the near term.
JKL iShares Morningstar Small Value Index
RZV Guggenheim S&P Smallcap 600 Pure Value
WSCVX Walthausen Small Cap Value
WTIFX Westcore International Small Cap
VSH Vishay Intertechnology Inc.
PRI Primerica, Inc.
PL Protective Life Corporation
CYH Community Health Systems, Inc.
OMX OfficeMax Incorporated
PERY Perry Ellis International Inc.
Additional disclosure: I also own shares in WSCVX and WTIFX and I may purchase additional shares of any of the stocks or funds mentioned in this post in the next 72 hours. I have mentioned or may mention any of these shares in newsletters that I publish that are available to clients and the public.