A unique approach to high-quality small cap equity

Discover the Capstone Difference

Big Value Through Small Cap

Research has shown that high-quality small capitalization stocks have consistently outperformed lower-quality, large cap stocks over multiple full market cycles.*
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Dynamic End-to-End Investment Strategy

Our disciplined investment strategy includes extensive research of potential opportunities, quantitative value analysis, building strong portfolios, and active hands-on management.
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Trusted Stability with a Management Edge

Capstone combines an experienced portfolio manager with multiple cycles of investing success with the stability of academic research and the backing of Atlantic Investment Company.
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Our Top 10 Small Cap Holdings

See our investment philosophy at work! Using a methodology that integrates innovative quantitative and traditional fundamental research, we have identified a selection of high-quality, small capitalization stocks that we believe represent the potential for long-term value.
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Capstone Articles

THE ARGUMENT FOR SMALL-CAP STOCKS DURING PERIODS OF RISING INTEREST RATES
As small-cap specialists, we are often asked: “How do small-cap stocks perform in a rising interest rate environment?”

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The Capstone Strategy

A long-only equity strategy focused on high-quality, undervalued U.S. companies with improving business prospects.

Out of all US equities, we select
1900 Names

Criteria:

  • US Equities that have a market cap more than $50 Million & less than $3 Billion
  • Exclude low volume issues

Quantitative screening gives us
250 Names

Criteria:

  • High/Rising ROE
  • Low/Moderate debt
  • Price/Earnings
  • Price/Free cash flow
  • Enterprise value/EBITDA

Fundamental analysis yields
75 Names

Criteria:

  • Tailwinds/Themes
  • Risks to thesis
  • Industry & sector dynamics
  • Corporate culture

Final selection process equals
40 positions

Criteria:

  • Diversification considerations
  • Position size management
  • Portfolio risk profile

We believe bottom-up stock selection, based on fundamental and earnings-based characteristics, is the most reliable and repeatable source of long-term, consistent outperformance.

We believe fundamental research is most effective when it is focused on leveraging anomalies to find value that the market may not have caught up with yet. We also believe that the combination of traditional research, informed by experience, and advanced quantititive methods, driven by technology, is superior to either on their own.

Our research and experience allow us to identify high-quality small cap stocks with great potential. We build diversified portfolios for our clients, that are dynamically managed with the goal of outperformance over time.

Capstone combines the best elements of innovative management with a solid heritage

Capstone Global was launched in January of 2016 when Chad Deakins and Atlantic Investment Company, headed by Malon Courts, joined together in a partnership to create a new venture that combined Chad’s innovative strategy with Atlantic’s stability and support.

Driven by a disciplined investment philosophy focused on high-value small cap stocks and comprehensive end-to-end management, Chad and Malon have built a truly unique company. Each has a personal stake in the strategies Capstone provides.

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Who We Are

Chad Deakins

Chad Deakins is the Chief Investment Officer for Capstone Global Investments and has over 20 years of institutional investing experience. Over his career, he has managed 4 different mutual funds and at one point managed over $4 Billion for clients.

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Malon Courts

Malon Courts is the President & CEO of Atlantic Investment Company, a position he has held since 1999. Atlantic is a family owned firm that has a rich history of making equity investments in both public and private businesses as well as commercial real estate.

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