Federated Hermes MDT Small Cap Core Fund Class R6 (QLSCX) Fund Overview

Federated Hermes MDT Small Cap Core Fund Class R6 (QLSCX) Financial Services Profile

Federated Hermes MDT Small Cap Core Fund Class R6 seeks long-term capital appreciation by investing primarily in small-cap U.S. companies, focusing on the Russell 2000® Index. With a beta of 1.29, the fund offers exposure to the small-cap market segment within the broader financial services sector, but does not offer dividend payouts.

What Is the Investment Thesis for QLSCX?

Federated Hermes MDT Small Cap Core Fund Class R6 presents an investment opportunity centered on long-term capital appreciation through exposure to the U.S. small-cap market. The fund's strategy of investing at least 80% of its assets in companies within the Russell 2000® Index provides a focused approach to capturing the growth potential of smaller companies. With a beta of 1.29, the fund exhibits higher volatility compared to the broader market, which could translate to higher potential returns during periods of economic expansion. Key value drivers include the fund's ability to identify and invest in undervalued small-cap companies with strong growth prospects. The ongoing economic recovery and increased investor appetite for small-cap stocks could serve as catalysts for the fund's performance. However, potential risks include the inherent volatility of small-cap stocks and the possibility of underperformance relative to the Russell 2000® Index. Investors may want to evaluate their risk tolerance and investment horizon when evaluating the suitability of this fund.

Based on FMP financials and quantitative analysis

QLSCX Key Highlights

The fund focuses on long-term capital appreciation by investing primarily in small-cap U.S. companies.

• At least 80% of the fund's net assets are invested in small companies, aligning with its investment objective.
• The fund adviser's investment strategy utilizes a small-cap approach by selecting most of its investments from companies listed in the Russell 2000® Index.
• The fund's investments may include equity securities of domestic issuers, providing exposure to the U.S. stock market.
• The fund has a market capitalization of $1.62 billion, reflecting its scale and significance in the small-cap investment landscape.

Who Are QLSCX's Competitors?

QLSCX is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are QLSCX's Key Strengths?

Focus on small-cap equities provides exposure to high-growth potential.

• Experienced investment team with a disciplined approach.
• Established brand and reputation of Federated Hermes.
• Diversified portfolio of small-cap stocks.

What Are QLSCX's Weaknesses?

Higher volatility compared to large-cap stocks.

• Potential for underperformance relative to the Russell 2000® Index.
• Dependence on the performance of the small-cap market.
• No dividend yield.

What Are the Key Risks for QLSCX?

Economic downturn or recession impacting small-cap company performance.

• Rising interest rates affecting valuations of growth stocks.
• Higher volatility compared to large-cap stocks.
• Competition from other asset management firms offering similar products.

What Are QLSCX's Competitive Advantages?

• Established brand and reputation of Federated Hermes.
• Experienced investment team with expertise in small-cap investing.
• Disciplined investment process focused on fundamental analysis.

What Does QLSCX Do?

Federated Hermes MDT Small Cap Core Fund Class R6 is designed to provide investors with long-term capital appreciation through strategic investments in the U.S. small-cap equity market. The fund's investment strategy revolves around identifying and investing in companies listed within the Russell 2000® Index, allocating at least 80% of its net assets, plus any borrowings for investment purposes, to these small-cap entities. This focus allows the fund to tap into the growth potential of smaller companies, which often exhibit higher growth rates compared to their larger counterparts. The fund's investment portfolio primarily consists of common stock issued by domestic companies, providing investors with exposure to a diverse range of industries and sectors within the U.S. economy. By concentrating on small-cap stocks, the fund aims to capitalize on market inefficiencies and growth opportunities that may be overlooked by larger institutional investors. The fund is managed by an experienced investment team that employs a disciplined approach to stock selection and portfolio construction, seeking to identify companies with strong fundamentals, growth prospects, and attractive valuations. Federated Hermes MDT Small Cap Core Fund Class R6 offers investors a vehicle to participate in the potential upside of the small-cap market segment while benefiting from the expertise and resources of a well-established asset management firm. The fund's focus on the Russell 2000® Index provides a benchmark for performance and allows investors to gauge its relative success in capturing the returns of the small-cap market. As of 2026, the fund maintains a market capitalization of $1.62 billion, reflecting its significance within the small-cap investment landscape.

What Products and Services Does QLSCX Offer?

• Invests primarily in the common stock of small U.S. companies.
• Targets companies listed in the Russell 2000® Index.
• Allocates at least 80% of its net assets to small-cap companies.
• Seeks long-term capital appreciation for investors.
• Manages a diversified portfolio of small-cap equities.
• Employs an active management strategy to select individual stocks.

How Does QLSCX Make Money?

• Generates revenue through management fees based on assets under management (AUM).
• Aims to outperform the Russell 2000® Index through active stock selection.
• Attracts investors seeking exposure to the small-cap market segment.

What Industry Does QLSCX Operate In?

Federated Hermes MDT Small Cap Core Fund Class R6 operates within the asset management industry, which is characterized by intense competition and evolving market dynamics. The fund's focus on small-cap equities positions it within a specific niche of the broader market, catering to investors seeking exposure to the growth potential of smaller companies. The asset management industry is influenced by factors such as market volatility, interest rates, and regulatory changes. The competitive landscape includes other asset management firms offering similar small-cap investment products, such as FGFAX, FSTKX, FSTLX, FSTRX, and FZADX. These funds compete for investor capital based on factors such as investment strategy, performance, and fees.

Who Are QLSCX's Key Customers?

• Individual investors seeking long-term capital appreciation.
• Institutional investors looking for exposure to small-cap equities.
• Retirement savers seeking diversified investment options.

QLSCX Financials

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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