AdCare Health Systems, Inc., a leading skilled nursing and assisted living provider, is expected to join the Russell Microcap® Index when Russell Investments reconstitutes its family of U.S. indexes on June 24, 2011, according to a preliminary list of additions posted on www.russell.com/indexes.
Membership in the Russell Microcap Index, which remains in place for one year, means automatic inclusion in the appropriate growth and value style indexes. Russell determines membership for its equity indexes primarily by objective, market-capitalization rankings and style attributes.
“Our anticipated membership in the Russell Microcap Index marks another major milestone for AdCare,” commented Boyd P. Gentry, AdCare’s president and CEO. “It clearly reflects the success of our ongoing M&A strategy, which we believe has been instrumental in the more than doubling of our market valuation since we initiated the program in the fall of 2009.”
“We are evaluating several new opportunities around our home base in the Midwest as well as in the Southeast, as our M&A program continues to be our major focus,” said Gentry. “We will continue to pursue acquisition opportunities that we believe represent quality additions to our business, and expect to announce the signing of a number of these over the coming months.”
Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for both passive and active investment strategies. An industry-leading $3.9 trillion in institutional assets currently are benchmarked to them.
Annual reconstitution of Russell Indexes captures the 4,000 largest U.S. stocks as of the end of May, ranking them by total market capitalization to create the Russell 3000® Index and Russell Microcap. These investment tools originated from Russell’s multi-manager investment business in the early 1980s when the company saw the need for a more objective, market-driven set of benchmarks in order to evaluate outside investment managers.
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