U.S. Small Cap Growth Equity

Why We're Different

• We've built a large, proprietary research database which we use to analyze fundamental information on 1,800 U.S. small capitalization, growth stocks.
  
  
• Our analysis excels at finding high growth stocks with earnings acceleration and positive change in Wall Street analysts' earnings expectations, while paying attention to what we pay for a company's future growth potential. 
  
  
• We select the 110 - 130 most attractive stocks predominantly between $75 million and $1.5 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. Small Cap Growth Equity Russell 2000® Growth   Number of stocks            138      1,275   Market Capitalization       $0.8 B    $0.9 B   Superior Growth            Long-term Growth Rate            21%        5%        Short-term Growth Rate            16%      10%   % of Companies with Positive Earnings Surprise            70%      67%   Reasonable Valuation            Current P/E Ratio           15x      16x

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

Status
This product is currently open to new clients, with a $10 million 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.