Ancora/Thelen Small Mid Cap (SMID) Strategy




Dan Thelen, CFA - Portfolio Manager


We seek to own undervalued stocks of fundamentally sound companies in the small‐mid (SMID) sized company capitalization range. We defined SMID as companies with market caps between $100 million and $10 billion. We focus on this range of companies because we believe it affords us the greatest opportunity from which to select underappreciated stocks. Within that universe, our extensive experience has taught us that alpha is generated primarily from three unique “buckets” of stocks, namely:
  • Franchise: Companies with unique competitive advantage that are temporarily mispriced.
  • Underfollowed: Companies that receive little or no Wall Street research attention.
  • Special Situations: Companies experiencing some type of corporate restructuring such as a spinoff(s), emergence from a bankruptcy, change in capital structure, etc. 
As a result of determining that these areas are the source of most alpha generation, we spend the great majority of our time identifying and evaluating stocks that fall into these categories and construct portfolios accordingly. 


  • Portfolio Construction: Typically 40-60 portfolio holdings that are fully diversified across economic sectors. 
  • Buy Discipline: We constantly identify and research stocks that fall into our classification of franchise, underfollowed or special situation categories. When both price and catalyst(s) align we buy.
  • Sell Discipline: We sell stocks that aren't working or after they have achieved our price target. We simply do not waste time on stocks that disappoint us or whose fundamentals change.
  • Risk Management: Position sizes are limited to 5% of the portfolio at cost.

Additional Information

  • Account Minimum: $1 million
  • Annual Fees: 100 bps
  • Custodial Arrangements: Available upon request
  • For more information: Contact Dan Hyland, Managing Director, Marketing & Client Services,, 216-825-4000