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Asset-Weighted Composite Return
Process of weighting the contributions to the composite rate of return by the market values of the composite's constituent portfolios.

Beta
Beta is the statistical estimate of the average change in the portfolio's rate of return corresponding to a 1% change in its relevant Benchmark. When used in terms of the S&P 500 Index, the index is given a value of 1.0. Stocks with a beta greater than 1.0 have in the past 12 months been more volatile than the market; those with a beta of less than 1.0 have been less volatile. Beta is only an estimate, and for it to be accurate, there needs to be a perfect correlation between the two series being compared.

Cash
Includes cash and short-term investments such as commercial paper, certificates of deposit, or U.S. Treasury bills that are held in lieu of cash and are readily converted to cash within a short period of time.

CFA Institute
CFA Institute is the global, non-profit professional association that administers the Chartered Financial Analyst® (CFA®) curriculum and examination program worldwide, publishes research, conducts professional-development programs, and sets voluntary, ethics-based professional and performance-reporting standards for the investment industry.

CFA®
The Chartered Financial Analyst (CFA®) Program is a globally recognized standard for measuring the competence and integrity of financial analysts. Its curriculum develops and reinforces a fundamental knowledge of investment principles. Three levels of examination measure a candidate's ability to apply these principles at a professional level.

Discovery Phase
As it pertains to Peregrine's Small Cap Growth Equity investment style or strategy, an early phase in a company's investment cycle where the company has the potential for rapid earnings growth of at least 20%, averaging 25–30%, historically.

Dividend Yield
Annual dividend payments expressed as a percentage of current price. For example, if a bond has a face value of $1,000 and a market price of $800 and a coupon rate of 10%, the current yield is $100 divided by $800, or 12.5%.

Earnings Per Share
A corporation's accounting earnings divided by the number of its common shares outstanding.

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Equal-Weighted Composite Return
Simple averaging of performance for all the portfolios in a composite regardless of size.

ERISA
Employee Retirement Income Security Act of 1974. This law governs qualified plans and it incorporates the pertinent provisions of both the Internal Revenue Code and labor laws.

Fundamental(s)
Refers to quantitative information that defines the value of a company. The list includes such factors as a company's sales, earnings, assets and dividend growth potential.

Global Investment Performance Standards (GIPS®)
The GIPS® standards are a set of ethical principles used by investment management firms in order to establish a globally standardized, industry-wide approach to creating performance presentations that communicate investment results to prospective clients. The underlying spirit of the Standards is fair representation and full disclosure. CFA Institute created and administers the GIPS® standards and partners with local country sponsors around the world to promote the Standards.

Information Gaps
Defined by the Small Cap Growth Equity team as information that is unknown or overlooked by other investors, creating the potential, for dramatic price appreciation in a company’s stock.

Initial Public Offering (IPO)
The first time a company's stock is offered for sale to the public.

Investment Style
The investment strategies used by portfolio managers. For equities, generally defined by Market Cap (large vs. small) and approach (growth vs. value).

Market Capitalization
When referring to the size of a company, capitalization means the total number of a company’s outstanding shares of stock multiplied by the price per share. This is an accepted method of determining a company’s size; companies are often categorized as Small Cap, Mid Cap or Large Cap.

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Price-to-Book Ratio
The ratio that represents the premium or discount a shareholder pays relative to the underlying company's net worth. Example: a stock with a book value of $10/share that is currently selling at $12/share has a 120% or 1.2X price-to-book ratio. The price-to-book ratio indicates the tangible, underlying hard assets of a company, instead of future earnings only.

Price-to-Earnings Ratio
The ratio between a stock’s price and its historical, current, or anticipated earnings.

Rediscovery Phase
As it pertains to Peregrine's Small Cap Growth Equity investment style, a phase in a company's investment cycle where it is misunderstood and therefore overlooked by most investors, yet has the potential for dramatic stock price appreciation through changes in management, asset redeployment, or corporate restructuring.

Russell 1000®
Measures the performance of the 1,000 largest companies in the Russell 3000® Index, representing approximately 92% of the total market capitalization of the Russell 3000 Index.

Russell 1000® Growth
The Russell 1000® Growth Index is a widely used large cap growth index. It contains stocks from the Russell 1000® Index with a greater than average growth orientation, representing a universe of stocks whose characteristics are like those from which growth managers typically select. The index has been reconstituted annually since 1989.

Russell 2000®
Measures the performance of the 2,000 smallest companies in the Russell 3000® Index, representing approximately 8% of the total market capitalization of the Russell 3000® Index.

Russell 2000® Growth
The Russell 2000® Growth Index is a widely used small cap growth index it measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values.

Russell 2000® Value
Measures the performance of those Russell 2000® companies with lower price-to-book ratios and lower forecasted growth values.

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Russell 2500™
Measures the performance of the 2,500 smallest companies in the Russell 3000® Index, representing approximately 16% of the total market capitalization of the Russell 3000® Index.

Russell 2500™ Growth
Measures the performance of those Russell 2500™ companies with higher price-to-book ratios and higher forecasted growth values.

S&P 500
Widely regarded as the standard for measuring large-cap U.S. stock market performance. The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index (stock price times number of shares outstanding), with each stock's weight in the Index proportionate to its market value. The "500" is one of the most widely used benchmarks of U.S. equity performance.

Standard Deviation
A measure of the mathematical deviation from the mean or average containing two-thirds of a statistical sample. For example: If the average annual return of the S&P 500 were 15% and the standard deviation were +/- 15%; two-thirds of the time, the return of the S&P 500 would fall between 0% and 30%. Standard deviation attempts to measure exposure to volatility.

Time-Weighted Rate of Return
A method used for calculating investment return that seeks to minimize the distortion caused by cash flows into and out of a portfolio over a given period.

Total Return
The rate of return on an investment, including reinvested dividends, interest, and capital gains distributions, plus or minus any change in the value of the asset.

Turnover
The rate at which securities within a portfolio are exchanged for other securities. It is the ratio of total purchases or sales (the lesser of the two for the evaluation period) to the average market value of the portfolio.

Weighted Average Market Capitalization
Weighted arithmetic mean of outstanding shares multiplied by price for each company held in a portfolio or included in an index. Used to determine the typical company size held in a portfolio, fund or style.

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