Skyline Asset Management, L.P. has developed a disciplined investment approach for investing in the small capitalization sector of the equities market. We employ a fundamental, bottom-up methodology characterized by three factors: 1) A value-oriented approach. We select stocks with low P/E ratios based on trailing, not forecasted, earnings. 2) Attention to earnings. We seek companies with attractive earnings growth outlooks. 3) A focus on underfollowed, neglected, out-of-favor stocks. Through intensive research, we find good companies that are overlooked or not widely followed. We invest in firms with market capitalizations that are within the range of the Russell 2000 Index.
Selecting companies with solid earnings growth prospects from a universe of low P/E stocks that are underfollowed provides exceptional performance potential at lower risk. This common sense philosophy is the heart of Skyline’s Small Cap Value equity approach.