Disciplined
A time-tested process applied to a dynamic ever-evolving environment intended to capitalize on market efficiency.
Prudent
Risk management and alpha generation start by finding high-quality companies with durable and profitable business models, balance sheet strength and management team capability.
Investing across the growth spectrum
We evaluate valuations and growth potential to identify Greenfield Growth, Stable Growth, and Unrecognized Growth companies.
Our belief is that high-quality growth companies with sound capital structures and attractive valuations will provide significant opportunities for outperformance. We believe the market’s assumed growth rate fade factor for many high-quality assets is too high. It is this inefficiency from which the strategy benefits as it attempts to isolate and generate long-term sources of alpha.
Attractive long-term return profile
- Historically, US mid-cap companies have outperformed broader US markets, with mid-cap growth companies outperforming a diversified mid-cap universe.
Exposure to high-quality mid-cap companies
Historically, high-quality companies have not only outperformed their lower quality counterpart, they have also been more resilient in down markets.
Stewardship driven by a seasoned, impassioned team
- Strategy supported by a management team with more than 50+ years of combined industry experience, an analyst pool with a research lineage of more than four decades and a support team offering a world-class client experience.
The team’s investment process is grounded in fundamental bottom-up research. The team spends the majority of their time evaluating individual company business models, including industry-specific dynamics that may affect their prospects for growth, with a focus on a three-to-five-year investment time horizon.
Idea generation
Potential investment opportunities come from various sources:
Interactions and discussions with internal and external analysts, meetings with company managements, conferences, and research reports.
Fundamental research and risk management
- The investment process is centered on bottom-up analysis that focuses on businesses’ fundamentals, such as new or innovative products or services, adaptive or creative management, and strong financial and operational capabilities to sustain growth.
- The team primarily focuses on highly profitable business models that are supported by sound capital structures.
- Risk management: Team emphasizes protecting against absolute loss over “engineering” portfolio construction relative to an index.
- Valuation is an integral part of the process. It serves as the second layer of risk management to the investment philosophy: buying high-quality growth companies at attractive valuations and where the fade factor of the company’s growth is discounted.
Strategic input
- The team recognizes that in some periodic environments macroeconomic factors and strategic exposures are crucial. The top-down input can influence the relative defensiveness of the portfolio and also helps determine allocations to Greenfield, Stable, and Unrecognized growth companies.
For more information on our equity capabilities
Risks
The value of the portfolio may fall as well as rise, and you may not receive back the amount invested.
As a class, equities carry higher risks than bonds or money market instruments.
Investments in small and/or medium-sized companies typically exhibit greater risk and higher volatility than larger, more established companies.
IBOR risk is the risk that changes related to the use of the London interbank offered rate (LIBOR) or similar rates (such as EONIA) could have adverse impacts on financial instruments that reference these rates. The abandonment of these rates and transition to alternative rates could affect the value and liquidity of instruments that reference them and could affect investment strategy performance.
Natural or environmental disasters, such as earthquakes, fires, floods, hurricanes, tsunamis, and other severe weather-related phenomena generally, and widespread disease, including pandemics and epidemics, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of the Strategy’s investments. Given the increasing interdependence among global economies and markets, conditions in one country, market, or region are increasingly likely to adversely affect markets, issuers, and/or foreign exchange rates in other countries. These disruptions could prevent the Strategy from executing advantageous investment decisions in a timely manner and could negatively impact the Strategy’s ability to achieve its investment objective. Any such event(s) could have a significant adverse impact on the value and risk profile of the Strategy.