Micro++ is an aggressively passive® portfolio, designed to capture the often sought, but seldom delivered, long-term advantages of small-cap investing – significant incremental returns and meaningful portfolio diversification.

Our approach is passive because we employ index-like techniques:

  +  simple screens to define an investible micro-cap universe

  +  systematic and disciplined portfolio-building and trading rules

Our approach is aggressive because of the active decisions that we make in constructing the universe and building the portfolio:

  +  we tilt the micro-cap universe and portfolio toward Value (our first "Plus")

  +  depending on market conditions, we may leverage the portfolio for incremental returns, or hedge the holdings against downside volatility and losses (our second "Plus")

Our goal is to deliver a significant "small-cap premium" by generating meaningful outperformance versus large-cap indexes, such as the S&P 500, as well as small-cap indexes, such as the Russell 2000.

Based on research covering long-term horizons, we believe we have the potential to achieve this goal.