WBC Ethical Small Cap
Growth investing in the small and microcap universe. Concentrated, conviction-led positions in companies undergoing an inflection in revenue, profitability, free cash flow, or strategic importance.
Small/Microcap Exposure
Actively managed in companies between $50 million and $500 million in market capitalization.
Concentrated
1–30 investments depending on opportunity set. Short-, medium-, and long-term horizons mixed by conviction.
No Management Fee
No management fee. Fees are only earned on profits at the end of the calendar year.
Philosophy & Process
WBC Ethical Small Cap Strategy buys small and micro cap stocks with significant growth potential. This segment of the market is widely underfollowed, providing a great opportunity to exploit market inefficiencies.
Small and microcap investing requires significant legwork. The companies are lightly covered by capital markets professionals and are often unprofitable. They can also be the source of extraordinary returns as those companies find a business model and grow.
The Strategy focuses on those companies undergoing an inflection in revenue, profitability, free cash flow, or strategic importance, with a high probability of success that we believe will result in significant stock appreciation in a relatively short period of time.
For medium and long term investments, White Brook engages deeply with management to help understand a company's strategy, to provide our perspective, and hopefully become a trusted, if arm's length, advisor.
The Strategy also trades short term positions when the stock is priced particularly inefficiently. The anticipated position turnover is approximately 50% due to these positions.
The strategy's investable universe excludes companies that customize their offerings to cause harm, count defense companies as a significant customer, or engage in vice. The Strategy is capacity constrained to $20mm.
The Strategy is currently overweight the healthcare sector exposing it to significant sector-specific risks. White Brook believes that investment timelines have shortened and both downside and upside volatility in the small cap space is elevated. The Strategy should only be considered by qualified investors able to lose a significant portion of their principal investment.
Portfolio Data — click to expand
Top 5 Holdings By position size
| Security Name | Ticker |
|---|---|
| Codexis, Inc | CDXS |
| Jakks Pacific Inc | JAKK |
| Perma-Fix Environmental Services, Inc. | PESI |
| Rapid Micro Biosystems | RPID |
| Sanara Medtech, Inc | SMTI |
Monthly Returns Net of fees · vs S&P 500 & Russell 2000
2026 YTD
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sept | Oct | Nov | Dec | Year | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Small Cap | 19.81% | (3.27%) | (14.99%) | 9.05% | — | — | — | — | — | — | — | — | 7.42% |
| S&P 500 | 1.37% | (0.87%) | (5.09%) | 10.42% | — | — | — | — | — | — | — | — | 5.31% |
| Rus 2000 | 5.39% | 0.80% | (5.01%) | 12.28% | — | — | — | — | — | — | — | — | 13.32% |
2025
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sept | Oct | Nov | Dec | Year | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Small Cap | 61.87% | 49.07% | (12.56%) | (10.42%) | 26.76% | 5.35% | (3.25%) | (10.01%) | 15.33% | (2.58%) | 17.81% | (15.70%) | 145.26% |
| S&P 500 | 2.70% | (1.42%) | (5.75%) | (0.76%) | 6.15% | 4.96% | 2.17% | 1.91% | 3.53% | 2.27% | 0.13% | (0.05%) | 16.39% |
| Rus 2000 | 2.62% | (5.35%) | (6.81%) | (2.31%) | 5.34% | 5.43% | 1.74% | 7.13% | 3.11% | 1.81% | 0.96% | (0.58%) | 12.79% |
Qualified Investor Definition (SEC)
- $1.2mm in investments with White Brook Capital LLC; or
- Provable net worth not including the primary home of at least $2.2mm; or
- Income of $200,000 individually or $300,000 as a married couple; or
- Employee of an investment adviser (other than clerical, secretarial, or administrative roles) who, in their regular duties, participates in the investment activities of the adviser, for at least 12 months; or
- An institution with over $5 million in assets; or
- A qualified purchaser.
Information presented are the actual results of the first SMA invested in the White Brook Capital Ethical Small Cap Strategy. All accounts invested in the Small Cap Absolute Growth Strategy are invested in similar concentration and traded in unison.
Past performance is no guarantee of future results. Charts and graphs are provided for illustrative purposes only. Before investing you should carefully consider the Strategy's investment objectives, risks, charges, and expenses.
An investment in the Strategy is subject to investment risk, including the possible loss of principal. The Strategy is subject to the same risks as the underlying securities in the portfolio. Commissions are charged on every trade. Brokerage commissions and Strategy expenses will reduce investment returns.
Diversification does not assure profit nor protect against loss in a declining market. Holdings and/or sector allocations are subject to change and are not buy/sell recommendations. It is not possible to invest directly in an index.
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