Johnson Opportunity Fund
Quality is the foundation of the Johnson Asset Management investment approach. We believe that high-quality companies will outperform over the long run. The Opportunity Fund is comprised of high-quality small and mid-cap stocks with favorable valuation and momentum characteristics. The team performs Fundamental bottom-up research aided by a proprietary quantitative assessment to construct a portfolio that seeks to consistently outperform its benchmark over a full market cycle, with the goal of providing downside risk management and reduced volatility.
Strategy Overview
The Johnson Opportunity Fund seeks to outperform the Russell 2500 Index over a full market cycle with downside risk management and reduced volatility. We utilize a disciplined portfolio construction framework relying on Fundamental bottom-up research aided by our proprietary quantitative assessment.
Investment Philosophy
Historical evidence supports our belief that high-quality companies outperform over the long run with reduced volatility and greater downside risk management in turbulent markets. In addition, we believe that combining quality with valuation and momentum factors may result in improved investment results and may contribute to producing potentially superior risk-adjusted returns over time. Finally, supporting our Fundamental bottom-up research with quantitative analysis results in a more disciplined investment process and improved risk management, with the goal of achieving more consistent performance.
Portfolio Overview
Starting from a market cap range of $400M-$20B, our team constructs a diversified portfolio of 70-90 small & mid cap stocks utilizing a disciplined, multi-step investment process with the goal of managing risk and seeking alpha. With a focus on quality, our portfolio is designed with the goal of outperforming the Russell 2500 over a full market cycle, with the goal of reducing downside participation and volatility.
Investment Guidelines
- Benchmark: Russell 2500
- Domestic small/mid cap equities with market caps between $400 million and $20 billion
- Diversified portfolio of 70-90 securities
- Maintain lower volatility than the Russell 2500
- Expected annual turnover less than 50%