Mega Cap Portfolio

The Approach

A quantitively-driven strategy emphasizing high quality large-cap stocks. Stocks are first screened to remove those that score poorly on financial and growth measures. Those stocks that remain are then ranked on a stand-alone basis in relation to five different factors: beta;* momentum; yield; value; and quality. The stocks that rank the highest for each factor are combined into one portfolio. Stocks that rank high in multiple factors are over-weighted.

The Features

A concentrated portfolio of fewer than 60 stocks that seeks to deliver superior risk-adjusted returns over the index. The investment objective of the fund is capital appreciation. Our research, as well as a large body of academic research, has found that the 5 factors selected for the portfolio are associated with long-term stock outperformance.

Annual Return - Dec. 1990 - Sept. 2024

12.5%

13.1%

13.4%

13.5%

14.0%

11.0%

Low Beta
(S&P 100)

Momentum
(S&P 100)

Yield
(S&P 100)

Value
(S&P 100)

Quality
(S&P 100)

S&P 500

Source: FactSet (Dec. 1990 – June 2019); Bloomberg (July 2019 – Present). Screening of Factors using the S&P 100 Index.

Key Facts

Strategy Assets

$92 Million

Holdings

*Beta (Ex-Ante)

0.76

Active Share

70%

Min Portfolio Size

$50,000

Sector Weightings

20% Cons.
Staples

19% Financials

14% Comm.
Services

11% Technology

10% Healthcare

7% Industrials

6% Energy

13% Other

Top 5 Holdings (% weight)

AT&T

4.1%

Verizon

4.0%

Nvidia

2.9%

Meta Platforms

2.8%

American Express

2.7%

*Beta; Active Share from Bloomberg PORT

*Beta = (Ex-Ante) is a forward-looking measure of the market risk of the portfolio relative to its benchmark. The beta of the benchmark is equal to 1.

Source: Addepar as of Sep. 2024; Bloomberg as of Sep. 2024

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E/ [email protected]P/ 316.776.4601 / 855.334.2110F/ 316.776.4620
www.6Meridian.com 8301 E. 21st Street N. Ste. 150, Wichita, KS 67206

6 Meridian is a group comprised of investment professionals registered with Hightower Advisors, LLC, a SEC-registered investment adviser. Some investment professionals may also be registered with Hightower Securities, LLC, member FINRA and SIPC. Advisory services are offered through Hightower Advisors, LLC. Securities are offered through Hightower Securities, LLC. This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment opportunities referenced herein will be profitable. Past performance is neither indicative nor a guarantee of future results. The investment opportunities referenced herein may not be suitable for all investors. All data or other information referenced herein is from sources believed to be reliable. Any opinions, news, research, analyses, prices, or other data or information contained in this presentation is provided as general market commentary and does not constitute investment advice. 6 Meridian and Hightower Advisors, LLC or any of its affiliates make no representations or warranties express or implied as to the accuracy or completeness of the information or for statements or errors or omissions, or results obtained from the use of this information. 6 Meridian and Hightower Advisors, LLC assume no liability for any action made or taken in reliance on or relating in any way to this information. The information is provided as of the date referenced in the document. Such data and other information are subject to change without notice. This document was created for informational purposes only; the opinions expressed herein are solely those of the author(s) and do not represent those of Hightower Advisors, LLC, or any of its affiliates.

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