Mid Cap

The PENN Mid Cap Equity style targets companies that trade at attractive valuations, have proven management teams, and sound prospects for growth. Our market capitalization range is consistent with the range of the Russell mid capitalization index.

In determining value, PENN focuses on cash flow and free cash flow metrics as opposed to earnings metrics as we believe they provide a clearer picture as to the long term value of the enterprise.

PENN’s defining element is our fully integrated credit and equity research process. Through our day to day involvement in the high yield bond market, we attempt to identify companies with “capital structure catalysts,” or strategies to lower their debt burden and overall cost of capital.

This type of corporate “de-leveraging” strategy enhances equity value. Our goal is to be an early identifier of these opportunities and our involvement in the high yield corporate bond market assists us in that process.