THB Mid Cap

Managed by Thomson, Horstmann & Bryant Inc.

-4.0% Last 30 days 2.1% Last 90 days - Last 365 days - Sharpe Ratio - Max Drawdown

THB Mid Cap

Managed by Thomson, Horstmann & Bryant Inc.

-4.0% Last 30 days 2.1% Last 90 days - Last 365 days - Sharpe Ratio - Max Drawdown
Risk score
Strategy Stocks
AUM fee 0.75%
• Investment minimum: 22500.0
• Margin account
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THB believes that stocks of Mid Cap companies are relatively inefficient and that a focused portfolio of high-quality names has the potential to offer superior risk-adjusted returns. THB takes a very long term view of the investment horizon and seeks to outperform the market by protecting during the down periods while offering participation during the up periods. We seek to construct a portfolio of high-quality, self-funded, low-risk companies with valuation metrics similar or lower than the benchmark but that still have superior long-term, value-creating characteristics. We believe the best companies are able to grow their businesses organically and via acquisitions using internally generated cash flows. Debt should be kept to a minimum with a preference for companies that retire shares outstanding. The strategy will hold approximately 30 securities and have high active share (i.e., high percentage of holdings differing from the benchmark Russell Midcap Index).  


Our investable universe begins with the Russell Midcap Index. At any given time, we have approximately 20-30 securities on our watch list, which is comprised of ideas from both quantitative and qualitative sources.


Quantitative Approach

We use our proprietary risk and fundamental screens to reject approximately 600 of the 800 securities in the benchmark index. Companies will be rejected due to a host of reasons, including but not limited to:

Excessive leverage; Excessive trading volatility; Inconsistent or nonsensical financials; High levels of intangible assets; and/or Excessive share dilution.

Allocation discipline

We assess qualitative risk via our 17-factor model, which focuses on four key areas:

Management: Management experience, vision and alignment to us as shareholders.
Financial flexibility: Cash flow characteristics, balance sheet strength.
Industry: Relative industry positioning, market share and dynamics, and government risk.
ESG: ESG grade and progress towards better ESG standards.

THB Risk Grading
We combine multi-year stock level standard deviation, historical sector adjustments and earnings volatility to calculate a blended risk score. This grade allows us to look at the historic risk of a company and how it has changed over time.

We use both our quality assessment and risk grade to adjust our return expectations for each name within our portfolio. This allows us to guide capital to our highest risk-adjusted return opportunities.

Sell discipline

During our initial analysis of a company, we highlight several reasons specific to the investment idea that could potentially cause us to reconsider our investment in the company. This is clearly documented in our investment idea package. Examples of poor execution or increased risk include: lack of margin expansion, failure of a new product to gain acceptance in the marketplace, new competitive threats, excessive increase in leverage, failure to sell and/or turnaround an underperforming division, and decline in same store sales relative to peers highlighting that the new concept is not working.

Other more general reasons to sell include fundamentals (deteriorating business, outsized change in business profile due to acquisition), valuations, and diversification benefits (portfolio risk controls). Rank order of importance is substantial change in management team, thesis changing events, fundamentals, valuations, and diversification.



All performance information on this page is based on the performance of the Portfolio Manager’s account. Client performance may differ. This information was calculated on May 20, 2019.

Daily returns
S&P MidCap 400 ETF
S&P 500 ETF
Manager (net of fees)
Last 30 days -4.0% -2.1% -3.9%
Last 90 days 2.1% 2.6% -1.8%
Last 365 Days   6.7% -2.2%
Since inception 2.9% 5.3% -3.5%
2019 (YTD) 16.7% 14.1% 13.3%
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About Thomson, Horstmann & Bryant Inc.

Founded in 1982, Thomson Horstmann & Bryant, Inc. (THB) is an employee-owned boutique firm that specializes in Micro, Small, Mid Cap, and International niche equity strategies. Our team of eight investment professionals constantly strives to find the best investment ideas deemed most likely to produce good results. With a robust research team and a deep bench, we pride ourselves on our entrepreneurial culture and our commitment to innovation and improvement. THB Mid Cap Strategy: Christopher Cuesta, CFA Principal, CEO Portfolio Manager 22 years of experience Christopher joined THB in 2002. Prior to joining THB, Christopher worked for Salomon Smith Barney and Van Eck Associates. He received a BS from Fordham University. Keith Dickinson, CFA Principal Portfolio Manager 15 years of experience Keith joined THB in 2010. Before joining THB, Keith worked for MBIA and Fitch Ratings. He received an MBA from the New York University Stern School of Business and a BS from Southern Utah University. Manish Maheshwari, CFA Principal Assistant Portfolio Manager 18 years of experience. Manish joined THB in 2011. Prior to joining THB, Manish worked for Barclays Capital, MBIA/Cutwater, UBS, Deutsche Bank , Morgan Stanley , and Dresdner Bank . Manish received an MS in Financial Mathematics from the University of Chicago and a B. Tech in Chemical Engineering from the India Institute of Technology Varanasi.

Important Information

  1. Past performance is no guarantee of future results, and all investments, including those in this portfolio, involve the risk of loss, including loss of principal and a reduction in earnings.
  2. All performance information on this page is based on the performance of the Portfolio Manager’s account, using the manager’s own funds. Portfolio Manager’s pre-Interactive Advisors performance information may include performance of non-Interactive Advisors client accounts. Performance of the Portfolio Manager's account is calculated by Interactive Advisors on a daily time-weighted basis, including cash, dividends and earnings distributions and reflects the deduction of broker commissions. Manager returns include trades and positions that fail Interactive Advisors' trading rules, as a result, actual client returns will differ. Interactive Advisors advisory fees are simulated and applied retroactively to present the portfolio return "net-of-fees".
  3. None of the performance information displayed on this page is based on the actual performance of any Interactive Advisors client account investing in this portfolio. The performance in an Interactive Advisors client account invested in this portfolio may differ (i.e., be lower or higher) from the Portfolio Manager’s account performance based on any trading restrictions imposed by the client (resulting in different account holdings), time of initial investment, amount of investment, frequency and size of cash flows in and out of the client account, applicable brokerage commissions, and different corporate actions.Clients investing in this portfolio may view the actual performance of their investment in this portfolio by logging into their Interactive Advisors account and reviewing their customized dashboard.
  4. All graph data is as of the end of day for the referenced period, unless otherwise specified. The investment minimum is the minimum investment required to follow a particular portfolio. The minimum amount is determined by Interactive Advisors, based on the characteristics of the underlying portfolio. It should not be considered as specific investment advice for your investment situation.
  5. The performance charts are provided for informational purposes only, and should not be used as the basis for making an investment decision. We rely on mathematical formulas, computer programs, and pricing information from third-party vendors to provide these returns. Neither Interactive Advisors nor any of its data or content providers shall be liable for any errors in this information or any actions taken by you in reliance upon this information.
  6. Benchmark returns displayed have been calculated by Interactive Advisors using daily adjusted close prices and include dividend income. More information here. For certain portfolios Interactive Advisors uses an index as a benchmark, while for others it uses an investable exchange traded fund (ETF) as a benchmark. Index returns do not reflect the deduction of any management fees, transaction costs or expenses. Individuals cannot invest directly in an index. Investable ETF returns reflect the deduction of (i.e., are net of) management fees, transaction costs and expenses.
  7. All Portfolio Manager information including personal data, profiles, strategies, monthly investment reports, and historical results outside of Interactive Advisors has been provided by the Portfolio Manager. Interactive Advisors makes no representation or warranty of its accuracy, completeness or relevance and it does not represent the opinions of Interactive Advisors. Transaction history of Portfolio Managers is available upon request. Portfolio classifications are provided by Interactive Advisors, and are intended to serve as a general guide.
  8. Not all transactions listed will appear in accounts due to Interactive Advisors' trading rules and individual client constraints. Eligibility of these securities is monitored periodically, and may change over time. Actual client investment holdings may vary.
  9. This portfolio was launched on Interactive Advisors on June 04, 2018.
  10. The Portfolio Manager could use short selling to manage this portfolio. Short selling is more complex than simply owning securities, involves a high degree of risk, is highly speculative, and is not suitable for all investors. The risk of loss associated with short selling is virtually unlimited. Short selling may also involve additional expenses and risks, including hard-to-borrow stock charges and buy-in risk. You should only select a portfolio using short selling if you are comfortable with the level of risk involved in short selling.
  11. The Portfolio Manager could use borrowed funds or leverage to fund investments in this portfolio. Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value. Leverage involves a high degree of risk, is highly speculative, and is not suitable for all investors. Leverage increases both the amount you may lose and the amount you may make in a portfolio, leading to higher returns in the case of favorable market movements but also larger losses under adverse market conditions. You may also incur additional expenses associated with borrowing funds. You should only select a portfolio using leverage if you are comfortable with the level of risk involved in using leverage.