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Federated Hermes MDT Mid Cap Growth Fund
TICKER ASSETS
FGSIX $ 3.9 billion
PERFORMANCE YTD 1 yr. 3 yr. 5 yr. 10 yr. 15 yr. 8.94 % 32.19 % 21.29 % 17.30 % 13.89 % 14.63 %
TOP 5 HOLDINGS
CONTACT INFO
TOP INDUSTRIES( As a % of portfolio) Information Technology 29.4 % Industrials 16.1 % Healthcare 13.4 % Consumer Discretionary 12.4 % Financials 11.1 % Communication Services 4.9 % Energy 4.1 % Consumer Staples 2.6 % Materials 2.2 % Cash / Cash Equivalents 2.2 % Utilities 1.5 % Real Estate 0.1 %
Palantir Technologies Inc.; Dexcom Inc.; Ameriprise Financial Inc.; Deckers Outdoor Corp.; AppLovin Corp.
800-341-7400 • federatedhermes. com
Performance and asset numbers as of 6 / 6 / 25. Holdings as of 4 / 30 / 25. Performance figures are for the institutional share class. Sources: Federated Hermes and Morningstar.
Finding Alpha In Mid-Cap Investing
One fund’ s systematic approach makes it a top performer in its space. By Jeff Schlegel
THE FOLKS WHO RUN THE FEDERATED HERMES MDT Mid Cap Growth Fund are quantitative, factorbased investors. That description can apply to any number of investment managers, but the managers of this fund employ a systematic program they believe differentiates them from the pack. And based on the fund’ s track record, they have a point.
This product has achieved top-quartile ratings in Morningstar’ s mid-cap growth category for every measurable time period going back 15 years, during which it ranked anywhere from fourth to eighth-best fund in its category. And Lipper took it up a notch earlier this year when it named the fund the top-performing mid-cap growth fund during the past three, five and 10-year periods.
According to MDT Advisers, the key to the fund’ s success rests with the firm’ s basic premise that excess returns can be achieved via an active, systematic investment strategy. It employs a multi-factor approach that parses the fund’ s investment universe by focusing on fundamental and technical factors it believes result in greater breadth of alpha sources and the potential for more consistent performance.
“ The way we describe it is that it’ s a fundamentally driven quantitative process,” says Daniel Mahr, one of the fund’ s four listed portfolio managers.“ Most of the characteristics we consider as part of the investment process relate to the fundamentals of the companies we invest in, but the implementation of the process is highly systematized.”
Scanning The Universe Daily
According to Mahr, the MDT name came from the firm’ s origin as the in-house advisor to an employee benefit retirement plan called Memorial Drive Trust that was run at the management consulting company Arthur D. Little. That company was located along Memorial Drive, the Cambridge, Mass., road that runs along the Charles River. Federated Investors Inc. in Pittsburgh bought MDT Advis-
44 | FINANCIAL ADVISOR MAGAZINE | JULY / AUGUST 2025 WWW. FA-MAG. COM