U.S. Mid Cap Equity

Why We're Different

• We've built a large, proprietary research database which we use to analyze fundamental information on 1,100 U.S. mid capitalization stocks.
  
  
• Our analysis excels at finding high growth stocks with earnings acceleration and positive change in Wall Street analysts' earnings expectations, which are currently trading below their fair market values.
  
  
• We select the 90 - 110 most attractive stocks predominantly between $2 billion and $10 billion in market capitalization.
  
  
• The portfolio remains fully invested and well-diversified, without any large stock or sector concentrations.
  
  
• We have rigorous sell disciplines and innovative trade execution strategies.

Representative Portfolio Characteristics (As of  12/31/2009)*

GlobeFlex U.S. Mid Cap Equity  Russell   Midcap®   Number of stocks           109    773   Market Capitalization         $4.3 B   $5.6 B   Superior Growth            Long-term Growth Rate          12%     2%        Short-term Growth Rate            8%    -3%   % of Companies with Positive Earnings Surprise          71%     57%   Reasonable Valuation            Current P/E Ratio           14x    17x

Best Performing Sectors for the Fourth Quarter
Materials, Information Technology, and Healthcare.

Status
This product is open to new clients, with a $10 million minimum account size. 

*All characteristics are medians, except for market cap which is a dollar-weighted median, as of December 31, 2009.  The long-term growth rate is a five-year historical measure of company earnings; the short-term growth rate is current year consensus company earnings; the P/E ratio is share price as of 12/31 divided by earnings based on current year consensus company earnings forecast; positive earnings surprise is reported earnings above analysts' earnings estimates for the most recent quarterly reporting period.