Yield. Valuation. Fundamentals.

U.S. Micro-Cap Value

DRZ Logo 2DRZ U.S. MICRO-CAP VALUE COMPOSITE – as of March 31, 2021

Inception Date: September 30, 1997
Annualized* DRZ Gross of Fees DRZ Net of Fees Russell Micro-Cap Value Russell 2000 Value
Quarter 25.52% 25.22% 29.43% 21.17%
One Year 90.27% 88.47% 115.37% 97.05%
Three Years* 13.70% 12.58% 13.52% 11.57%
Five Years* 18.51% 17.35% 17.06% 13.56%
Seven Years* 11.61% 10.48% 10.58% 8.93%
Ten Years* 11.60% 10.39% 11.70% 10.06%
Fifteen Years* 10.36% 9.17% N/A 7.38%
Twenty Years* 11.85% 10.67% N/A 9.53%

U.S. Micro-Cap Value Disclosure

September 30, 1997 through December 31, 2020
Year Gross Return(%) Net Return(%) Index Return(%) Composite 3-Year Annualized Standard Deviation Index 3-Year Annualized Standard Deviation Number of Portfolios Composite Dispersion(%) Strategy Assets ($millions) Total Composite Assets ($millions) Total Firm Assets ($billions)
2020 (20.70) (21.31) (19.90) 21.15% 23.56% ≤5 N/A 284 162 2.872
2019 25.43 24.21 21.28 15.67% 16.07% ≤5 N/A 186 3.562
2018 (11.84) (12.73) (11.96) 16.23% 16.55% 6 0.52 412 10.53%
2017 14.41 13.29 11.09 15.15% 15.02% 6 0.13 502 10.43%
2016 46.43 45.02 30.59 15.84% 15.95% 7 0.07 461 8.29%
2015 (9.65) (10.55) (6.45) 13.29% 13.56% 7 0.01 317 5.49%
2014 (0.55) (1.78) 3.15 13.57% 13.41% 11 0.06 451 5.72%
2013 30.78 29.19 41.17 15.52% 16.46% 13 0.06 586 6.88%
2012 14.89 13.8 22.81 19.26% 21.32% 16 0.03 458 6.76%
2011 (4.43) (5.62) (10.33) 25.31% 26.05% 18 0.11 472 7.17%
2010 28.34 26.77 28.35 13 0.18 345 5.92%
2009 34.19 32.67 17.52 7 N/A 140 2.87%
2008 (27.77) (28.51) (34.93) 7 N/A 87 2.79%
2007 (3.07) (4.04) (13.13) 8 N/A 133 2.58%
2006 29.77 28.51 23.48 ≤5 N/A 117 2.18%
2005 1.87 0.86 4.71 6 N/A 93 1.89%
2004 28.08 26.83 22.25 ≤5 N/A 68 1.50%
2003 34.21 32.90 46.03 ≤5 N/A 76 2.25%
2002 (5.80) (6.74) (11.43) ≤5 N/A 97 4.69%
2001 26.17 24.93 14.02 ≤5 N/A 72 3.99%
2000 26.21 24.98 22.83 ≤5 N/A 16 0.89%
1999 10.44 9.34 (1.49) ≤5 N/A 16 0.92%
1998 (9.18) (10.09) (6.45) ≤5 N/A 13 0.59%
09/30/97 – 12/31/97 1.94 1.69 1.68 ≤5 N/A 3 0.13%

DePrince, Race & Zollo, Inc. has presented this report in compliance with the Global Investment Performance Standards (GIPS®).

  1. DePrince, Race & Zollo Inc. (DRZ) is an independent investment management firm, founded in 1995, that manages equity portfolios primarily for U.S. institutional clients.
  2. DRZ claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. DRZ has been independently verified for the periods March 31, 1995 through December 31, 2019 by The Spaulding Group. The verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.
  3. Accounts that experience cash flows of 10% or more will be temporary removed from the composite for one month; this policy applies to all periods. Additional information regarding the firm’s policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.
  4. All accounts managed according to the DRZ Micro Cap Value strategy have been included in the composite regardless of industry restrictions imposed by the individual accounts.
  5. The composite invests in U.S. stocks, ADRs, and foreign domiciled stocks traded in US dollars on the major US exchanges that generally have the following characteristics; a dividend yield generally above 1% and a market capitalization that does not exceed the largest market capitalization in the Russell Micro-Cap Value Index.
  6. Past performance is not indicative of future results. The actual return and value of an account will fluctuate and at any point could be worth more or less than the amount invested. Individual account performance will vary according to individual client investment objectives.
  7. The benchmark is the Russell Microcap Value Index which measures the performance of the stock of 2000 companies included in the microcap value segment of the U.S. Equity market. Prior to January 2007 the composite was measured against the Russell 2000 Value index, which was changed to more accurately represent the composite strategy. DRZ’s managed portfolios consist of 50-80 individual securities. Material differences exist between the holdings and weights of the Index and DRZ’s managed portfolios.
  8. Total time-weighted rates of return are expressed in US dollars. Computations include the reinvestment of all dividends and capital gains. For investments in ADRs and foreign domiciled companies, dividends are included net of any withholding taxes.
  9. The composite was created in October 1997. DRZ’s list of composite descriptions is available upon request. This composite requires a minimum asset level of $1,000,000 (one million dollars) for inclusion.
  10. Net performance returns are calculated by deducting the highest investment advisory fee.
  11. DRZ’s standard fee schedule for Micro Cap Value is 1.00% on all amounts.
  12. Internal dispersion is calculated using the equal-weighted standard deviation of annual gross returns of those portfolios that were included in the composite for the entire year; it is not presented for periods with 5 or fewer portfolios. The three-year annualized ex-post standard deviation measures the variability of the composite and the benchmark returns over the preceding 36 months period. The three-year ex-post standard deviation is not required for periods prior to 2011.
  13. Starting January 2019 the percentage of total firm assets has been replaced with total firm assets.
  14. All information including portfolio and performance statistics contained in this document is presented at the composite level rather than for an individual account. This presentation is for informational purposes only and should not be deemed as a recommendation to buy the securities mentioned. The securities highlighted in this document, if any, represent recent holdings. Each quarter, DRZ uses the same objective, non-performance based criteria to select these securities. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities discussed in this report.
  15. If clients are listed in this document, it is not known whether they approve or disapprove of DRZ or the advisory services it provides. If included, the representative clients listed in this document are a cross section of current accounts that may or may not maintain similar investment objectives as those expressed by DRZ’s prospective clients. This list may include accounts that are not invested in the investment strategy described in this document.
  16. FTSE is the source and owner of Russell Index data reflected in this material and all trademarks and copyrights related thereto.  Unauthorized use, disclosure, copying or redistribution of such data is prohibited. FTSE is not responsible for the formatting or configuration of this material or for any inaccuracy in this presentation.
  17. Please contact your DRZ representative for a complete list of DRZ’s composites.