The SMID Cap Growth strategy seeks superior capital appreciation through careful selection from a universe of high-quality, small- and mid-capitalization growth companies. We generally invest in profitable companies 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 who are CPAs in addition to being CFA charterholders, driving 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

• Aims to outperform the Russell 2500 Growth Index over the long-term
• Fully invested in equities; no market timing
• Risk controls
  • Maximum exposure to any one company will be 2.5% at cost and 4.0% at market
  • Well diversified portfolio of 70-90 names
  • Broad industry and sector exposure - no large sector bets
• Low portfolio turnover: 15-20% annual average
• Low composite dispersion across portfolios*

*Subject to client specific restrictions