AlphaMark Actively Managed Small Cap ETF (SMCP)

Overview

The described entity appears to be a mutual fund focusing on investment in small-cap companies. It emphasizes a strategy of investing at least 80% of its net assets, alongside any borrowings for investment purposes, in such companies. The Adviser's approach leans heavily on selecting companies that showcase a historical pattern of consistent growth, have the capability to maintain sustainable earnings momentum, and possess the resilience to generate a stable cash flow across various economic conditions. Utilizing a “bottom-up” methodology for internal stock screening, the fund's goal is to pinpoint investments in companies with dependable cash flow streams and a valuation that suggests significant growth potential. This implies a keen emphasis on fundamental analysis to drive investment decisions, ensuring that selections are grounded in intrinsic company performance and value rather than broader market movements.

Products and Services

The fund's offerings can be analyzed based on its investment strategy and portfolio construction methods, as detailed below:

• Small-Cap Company Investments:

  Focused primarily on small-cap companies, the fund commits at least 80% of its financial resources, plus any borrowing, to invest directly or indirectly in this sector. These investments are expected to be in firms that not only show potential for growth but are also assessed to be undervalued or have the capability to provide sustainable returns over time.

• Consistent Growth and Sustainable Earnings Investment Criteria:

  One of the fundamental criteria for selecting investments is identifying companies with a proven track record of consistent growth and sustainable earnings. This signifies an emphasis on entities that have demonstrated the ability to perform reliably, especially in generating earnings and managing cash flow in both favorable and unfavorable economic cycles.

• Cash Flow Generation Capability:

  The advisement strategy underscores the importance of a company's capability to generate a stable and reliable stream of cash flow. This characteristic is crucial for ensuring that investments can weather economic variances and still provide returns to the fund. It aligns with the fund's approach to seek out companies that are not just growth-oriented but are also financially robust and operationally resilient.

• Bottom-Up Stock Screening Process:

  Utilizing a bottom-up approach to stock selection, the fund's investment strategy involves a detailed analysis of individual companies rather than focusing on industry-wide trends or economic forecasts. This process is designed to identify stocks based on their cash flow stability and growth potential, ensuring that each investment is aligned with the fund's criteria for reliability and growth opportunity. The comprehensive screening process adheres to stringent standards of financial performance and market valuation to identify prospective investments.