Active Insights Podcast: “We are guided by the belief that markets really often misprice securities due to investor mistakes or behavioral biases. And we can use those biases to potentially capture alpha.”
CS McKee: “ We are guided by the belief that markets really often misprice securities due to investor mistakes or behavioral biases. And we can use those biases to potentially capture alpha.”
In this podcast, Mark Goodwin, Chief Executive Officer of North Square Investments will discuss CS McKee’s approach to equity investing with Portfolio Managers Mark Roach and Mario Tufano. Mark and Mario joined CS McKee with the acquisition of Foundry Capital, a boutique equity investment manager, primarily advising institutional investors since 2013.
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This podcast was recorded April 30, 2025. The opinions expressed herein are those of North Square Investments, LLC (North Square) and are subject to change without notice. The opinions referenced are as of the date of publication/distribution, may be modified due to changes in the market or economic conditions, and may not necessarily come to pass. Forward looking statements cannot be guaranteed. The discussions in our podcasts are for general informational purposes only and should not be considered as investment advice. The inclusion and performance of specific investments discussed represent only a sample of North Square’s Fund investments, and do not represent North Square’s Fund investments or performance as a whole. A complete list of North Square’s holdings is available upon request. There is no guarantee that any investments discussed at the time of this podcast will remain in North Square’s Fund(s). Past performance is not indicative of future results. It should not be assumed that any of the securities or companies discussed have been or will be profitable, or that investment recommendations or decisions we make in the future will be profitable. Nothing discussed herein constitutes an offer or recommendation to buy or sell a particular security or investment strategy. North Square reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs. There is no guarantee that North Square’s assessment of investments will be correct. The discussions, outlook, and viewpoints featured are not intended to be investment advice and do not take into account any specific investment objectives or risk tolerance you may have. Some information contained herein derives from third-party sources North Square believes to be reliable; however, accuracy and completeness cannot be guaranteed. Some material discussed represents an assessment of the market environment regarding a specific security or industry at a particular point in time and is not intended to be a forecast of future events or a guarantee of future results. The investment strategy or strategies discussed may not be suitable for all investors. Investors must make their own decisions based on their specific investment objectives and financial circumstances. No assurance, representation, or warranty is made by any person that any of North Square’s assumptions, expectations, objectives and/or goals will be achieved. Nothing contained in the document many be relied upon as a guarantee, promise, assurance, or representation as to the future. This discussion, including any hypothetical illustrations, are intended to form a basis for further discussion with your legal, accounting, and financial advisors. Actual future investment returns, taxes and inflation are unknown. Do not rely upon this report to predict future investment performance. North Square is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about the companies’ investment advisory services can be found in their respective form ADV, which are available upon request.
Past performance does not guarantee of future results. Please click here to view standardized performance for the Fund.
Principal Risks of Investing: Risk is inherent in all investing, including an investment in the Fund. An investment in the Fund involves risk, including the following principal risks, among others: Market Risk, Equity Risk, Value-Oriented Investment Strategies Risk, Management and Strategy Risk, Small-Cap Company Risk, Foreign Investment Risk, Valuation Risk, Sector Focus Risk (Financials Sector and Industrials Sector), Preferred Securities Risk, Convertible Securities Risk, Fixed Income Securities Risk, High Portfolio Turnover Risk, Cybersecurity Risk, and Reliance on Technology Risk Summary descriptions of these and other principal risks of investing in the Fund are set forth in the Fund’s prospectus. Before you decide whether to invest in the Fund, carefully consider these risk factors associated with investing in the Fund, which may cause investors to lose money. There can be no assurance that the Fund will achieve its investment objective. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Please see the Fund’s prospectus for additional risk disclosures.
Definition of terms used in this podcast:
The price-to-earnings ratio (P/E) compares a company’s share price with its earnings per share. Analysts and investors use it to determine the relative value of a company’s shares in side-by-side comparisons.
The price-to-book ratio is a financial metric that compares a company’s market value to its book value, which is the value of all its assets minus its liabilities, which assists investors in identifying undervalued stocks.
The price to cash flow ratio (P/CF) is a common method used to assess the market valuation of publicly-traded companies to determine if a company is undervalued or overvalued. The P/CF ratio formula compares the equity value (i.e. market capitalization) of a company to its operating cash flows.
Earnings growth refers to the rate at which a company’s profits, specifically earnings per share (EPS), are increasing over time.
A basis point is a unit of measure to describe the percentage change in the value or rate of a financial instrument. One basis point is equivalent to 0.01% (1/100 of a percent) or 0.0001 in decimal form.
EBITDA, or Earnings Before Interest, taxes, Depreciation and Amortization is a profitability ratio that measures a company’s operating profit as a percentage of its total revenue. The ratio is calculated by dividing EBITDA by total revenue. This metric helps investors and analysts assess how efficiently a company is generating profits from its core operations, providing a comparison of profitability across different companies or over time.
Enterprise value represents the total value of a company, taking into account both equity and debt, and subtracting cash and cash equivalents.
Momentum is the rate of acceleration of a security’s price—in other words the speed at which the price is changing.
Alpha represents the excess return of an investment strategy compared to its benchmark index, after accounting for risk.
Downside capture refers to a ratio that measures how much of a benchmark index’s losses an investment experiences during periods of market downturns. A low downside capture ratio (less than 100%) indicates that the investment lost less than the benchmark, suggesting it performed better in negative market conditions.
The CBOE Volatility Index, or VIX, is a real-time market index representing the market’s expectations for volatility over the coming 30 days. Investors use the VIX to measure the level of risk, fear, or stress in the market when making investment decisions.
A long-duration strategy describes an investing approach in which an investor focuses on bonds with a high duration value. The investor is likely buying bonds with a long time before maturity and greater exposure to interest rate risks.
The “Magnificent Seven” stocks are a group of high-performing and influential companies in the U.S. stock market: Alphabet, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA, and Tesla.
The PCE Index, or Personal Consumption Expenditures Index, is a key economic indicator that tracks inflation in the United States. It measures the changes in prices paid by households for goods and services, and is frequently used to gauge overall inflation levels. Unlike the Consumer Price Index (CPI), the PCE index is considered a more dynamic measure of inflation because it adjusts for shifts in consumer spending patterns
Popularized by legendary investor Warren Buffett, an economic moat refers to a company’s ability to maintain a competitive advantage over its rivals, protecting its long-term profits and market share, similar to how a moat protects a castle.
The Russell 1000® Index follows the 1,000 largest publicly traded companies in the U.S., making it a go-to benchmark for large-cap investing. It covers about 93% of the U.S. stock market by market value and is rebalanced every year to reflect changes in company size.
The Russell 2000® Index is a market capitalization-weighted index that measures the performance of the smallest 2,000 companies in the Russell 3000 Index. It’s widely considered the benchmark for the U.S. small-cap market segment.
The Russell 2000® TR Value Index measures the performance of the small cap value segment of the US equity universe. It includes those Russell 2000 companies with relatively lower price-to-book ratios, lower I/B/E/S forecast medium term (2 year) growth and lower sales per share historical growth (5 years). One cannot invest directly in an index. The Index is shown for comparative purposes only.
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by calling 855-551-5521. Please read the prospectus carefully before you invest.
To view a list of North Square Small Cap Value Fund’s top holdings, prospectus and risks, please click here.
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