Mid Cap Value Portfolio
Part of the Azzad Ethical Wrap Program
A comprehensive halal wealth management solution for high net worth clients, organizations, and business owners.
Pioneer Natural Resources Co. 5.09
Agilent Technologies Inc. 4.91
EOG Resources Inc. 4.83
Trane Technologies PLC Class A 4.39
Sysco Corp 4.37
As of 9/30/2023. For illustrative purposes only; subject to change. Model portfolio holdings and allocations are subject to change and are not a recommendation to buy or sell any security.
What are Mid Cap Value Stocks?
Mid cap stocks are shares of companies that fall between large-cap and small cap companies in terms of market capitalization (the total market value of all their shares). Different managers use different dollar amounts in their definitions of mid cap, but in general mid caps are companies with a market cap between $2 billion and $10 billion.
Mid cap companies also tend to fall between large and small cap companies in terms for risk and volatility. They may be somewhat more volatile than their large-cap counterparts, but they also still have room to grow, which could mean bigger returns.
Mid cap value stocks are companies in this category that analysts believe to be under-valued, meaning their stock prices are lower than what they could be based on the fundamentals of the companies.
The Mid Cap Value Portfolio Manager
Shaza Farawati is an investment analyst at Azzad Asset Management. She is part of the investment committee that manages the mid cap value strategy. She holds a bachelor’s degree in business administration (BBA) and a Master of Science degree in finance (MSF) from American University in Washington, D.C. She started her career in finance at Dubai Islamic Bank as a personal finance advisor.
Objective & Strategy
Azzad’s Mid Cap Value Portfolio is passively managed according to its benchmark, the Russell MidCap® Value Index.
Historically, mid cap stocks have offered higher rates of return than large cap stocks but lower rates of return than small-cap securities. Mid cap stocks have also been more volatile than large cap stocks but less volatile than small cap stocks.
The portfolio generally holds fewer than 40 stocks.
Investment Approach
Our Azzad Mid Cap Value portfolio mirrors the Russell MidCap Value index, adjusted by our strategic factor-based approach. We screen investments using key value metrics like price-to-earnings ratios, while incorporating quality indicators such as gross profit margins.
This dual strategy-combining comprehensive Russell MidCap Value coverage with targeted factor analysis-allows us to build a portfolio that closely tracks benchmark performance while maintaining robust diversification and disciplined risk management.
