At what market cap does a mid cap stock exit the portfolio?
New Amsterdam Partners defines mid cap stocks as companies with market capitalizations between $1 billion and $9 billion. This cap restriction is placed on securities at the time of purchase. However, if the value of a stock appreciates so that its market cap exceeds $9 billion, we will not sell the position based on valuation alone, but rather on the determination of our Investment Committee. As a stock appreciates, we systematically reduce its portfolio position if its value reaches 5.0% of the portfolio’s market value.
