February 6, 2026 | U.S. Value Equity
Head of the U.S. Value Equity Team, Portfolio Manager
View Fund:
https://im.williamblair.com/investments/mutual-funds/ismvx-small-mid-cap-value-fund
View Strategy:
https://im.williamblair.com/investments/separate-accounts/small-mid-cap-value
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We think SMID value offers a very interesting opportunity set because in many ways it’s the best of both worlds. The larger-market-cap, typically more liquid companies fall in the small side of SMID. At the same time, you’ve got a lot of great companies that started out as small-cap companies and grew and were successful, so they now populate the SMID-cap universe. At the upper end, you’re getting a lot of mid-cap companies that might be temporarily impaired and now have come into the SMID-cap universe.
A Proxy for Small-Cap Value?
We think the SMID value product is actually a very interesting proxy for small-cap value for a number of reasons. One is the benchmarks are very similar so there is actually a very high correlation among returns. And then from a competitive standpoint, we are very disciplined about keeping the average weighted market cap of our portfolios at or below the index average.
Exposure to Mid-Cap Value
The SMID-cap product offers a very interesting opportunity to get exposure to the mid-cap, which we think is a very underappreciated and under-allocated index. There is an overlap at the upper end of SMID, which is actually the lower end of mid, so we think you’re getting a very nice exposure to the smaller side of mid, which we actually think is the best part. We think that is the least efficient part of mid-cap and offers the best opportunities.
Our Edge
We believe the William Blair SMID-cap value product is very interesting because we’ve built a consistent and repeatable process. Said another way, we’re patient but not complacent. We’re always seeking the best returns for our investors, at the same time always trying to minimize the risk in a portfolio.
Filmed January 2026
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