WALNUT CREEK, Calif.—Effective June 19, 2017, Litman Gregory Fund Advisors has hired Segall Bryant & Hamill as a sub-advisor to the Litman Gregory Masters Smaller Companies Fund. Segall Bryant & Hamill is an independent investment firm based in Chicago, Illinois with offices in St. Louis, Missouri; Philadelphia, Pennsylvania; and Naples, Florida.
The Litman Gregory Masters Smaller Companies Fund is a core smaller-cap equity fund that provides access to the highest-conviction investment ideas of a group of highly skilled managers with different stock-picking styles. Segall Bryant & Hamill replaces First Pacific Advisors (FPA) and will represent one-third of fund assets, a weighting equal to the fund’s two other sub-advisors, Jeffrey Bronchick of Cove Street Capital and Dick Weiss of Wells Capital Management. FPA has been a manager on the fund since its 2003 inception and we appreciate their partnership and contributions to the portfolio.
Mark Dickherber, CFA, CPA, and Shaun Nicholson will be the co-portfolio managers for Segall Bryant & Hamill on the Smaller Companies account.
“We have been impressed with the co-managers of the small-cap value team at Segall Bryant & Hamill for several years,” said Jack Chee, Litman Gregory Principal and Co-Portfolio Manager. “We think their edge lies in their focus on identifying the potential for significant improvement in a company’s return on invested capital, and more specifically, positive change with respect to company management’s capital allocation decisions, which is often a precursor to sustainably higher levels of profitability.” Litman Gregory Chief Investment Officer and Co-Portfolio Manager, Jeremy DeGroot, added, “we are particularly excited to have the team manage a very focused portfolio of only their highest-conviction stocks for the fund.”
For more information and analysis on this manager addition, see our due diligence report.