US Smid Cap Growth Equity

Key features

Thematically oriented

investment process focused on early stage demand trends

Concentrated portfolio

invested in competitively advantaged leaders with significant growth potential

Dedicated investors

{{{utilizing}}} the same investment philosophy since 1987

Our philosophy

Earnings growth drives stock prices over the long term. Companies with the strongest gains in profitability are expected to enjoy share performance that exceeds the broad market averages. In our view, markets chronically underestimate the earnings potential of competitively advantaged companies involved in major demand trends. Identifying trends early and investing in the leaders of these trends can create an opportunity for above-average earnings growth and share performance.

What does the opportunity represent?

Attractive long-term return profile

Historically, US smid-cap companies have outperformed broader US markets, with smid-cap growth companies outperforming a diversified smid-cap universe.*

Participation in multidecade expansionary period

In our view, the US economy is in the early stages of a multidecade expansionary period with long-term demand trends transforming our everyday lives.

Investments in high growth leaders

By focusing on only the competitively advantaged leaders of major demand trends, the strategy aims to maintain its high growth profile.

Opportunities to add alpha

Inefficiencies within the small-cap markets can make this area ripe for active management through a concentrated and stylistically pure portfolio.

* Source: Morningstar as of 3/31/2019

Our process

A top-down thematic process with bottom-up fundamental research is designed to identify early-stage, major demand trends and the companies leading these trends.

Process strategy

Develop macroeconomic outlook

  • Evaluate inputs, determine where markets are in the cycle, and establish minimum earnings growth rate for investments.

Identify dynamic growth trends

  • {{{Recognize}}} early stage demand trends.
  • Focus on broad and long-lasting trends.

Invest in competitively advantaged companies

  • Proprietary research to identify trend leaders with earnings in excess of minimum rate.
  • Evaluate companies, management, and competitors with rigorous fundamental research.
  • Build a concentrated portfolio of 30-40 names in a best ideas portfolio.

Manage risk

  • Adhere to strict sell discipline.
  • Maintain high growth profile.
  • Be benchmark aware.
  • Manage factor exposures.

Management team

Alex Ely

Alex Ely 

  • Managing Director, Chief Investment Officer — US Growth Equity
  • Read bio
Dina Pliotis

Dina Pliotis 

  • Senior Vice President, Senior Equity Analyst
  • Read bio
Jane Fisher

Jane Fisher 

  • Senior Vice President, Investment Specialist
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Nate Mahrer

Nate Mahrer 

  • Senior Vice President, Senior Equity Analyst
  • Read bio
Traver Davis

Traver Davis 

  • Vice President, Equity Analyst
  • Read bio

Resources

United States Insight
August 19, 2020

Investing in disruptions

Why it can work for small caps and what may lie ahead

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United States Insight
January 31, 2020

Smid-cap growth 2020: Investing in disruptions

In this video segment, Alex Ely describes investing in disruptions as a key opportunity that his Small/Mid-Cap Growth Equity team is following in 2020, in areas ranging from software as a service to medical technology.

Learn More
United States Insight
31 January 2020

Smid-cap growth 2020: Investing in disruptions

In this video segment, Alex Ely describes investing in disruptions as a key opportunity that his Small/Mid-Cap Growth Equity team is following in 2020, in areas ranging from software as a service to medical technology.

Learn More
for-big-ideas-think-small
September 26, 2019

Finding opportunities across the small-cap spectrum: For big ideas, think small.

Listen to our latest webinar replay that challenges the misconception that bigger is better. Think small as Macquarie Investment Management (MIM) professionals provide distinct perspectives on the small-cap equity landscape in both the growth and value asset classes.

Access the replay
we-are-bullish-on-growth-investing
08 February 2019

We are bullish on growth investing

Long-term investors should look past the near-term news, and focus on the growth trends driving economics and positive change.

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Value versus growth: A rising opportunity overseas?
July 30, 2020

Value versus growth: A rising opportunity overseas?

Access the latest chart to view a long-term analysis of international value versus international growth and why we believe it may be the time to increase exposure to international value equities.

Learn more