The Small Cap Growth strategy seeks superior capital appreciation through careful selection from a universe of high-quality, small-capitalization growth companies. We generally invest in profitable companies selling at reasonable valuations utilizing a bottom-up fundamental approach. We are a conservative growth investor and invest in companies for long-term capital appreciation which results in below average turnover.

Strategy overview

• Belief in a strong correlation between a company's earnings growth and its stock price appreciation
• Focus on companies that exhibit consistent growth characteristics, a solid balance sheet and a strong management team
• Belief that companies with steady revenue and earnings growth contribute to low portfolio volatility and long term out performance

Approach

Investment process

• High conviction, bottom-up fundamental approach built around a long investment horizon
• Uniquely qualified - three team members with CPAs in addition to CFAs, drive deeper analyses of company accounting issues to distinguish high quality earnings from unsustainable earnings
• Low volatility and downside protection through a bottom-up fundamental analysis targeting profitable companies generating more consistent financial results

Portfolio construction

• Designed to outperform the Russell 2000 Growth Index and Russell 2000 Index on an annualized basis over the long-term
• Risk controls
  • Maximum exposure to any one company will be 2.5% at cost and 4.5% at market
  • Broad industry and sector exposure across 65-80 holdings with no large sector bets
• Fully invested in equities; no market timing
• Regular industry and sector attribution reviewed by investment team
• Low portfolio turnover: 15-20% annual average
• Low composite dispersion across portfolios*