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
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Dina Pliotis

Dina Pliotis 

  • Senior Vice President, Senior Equity Analyst
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Jane Fisher

Jane Fisher 

  • Senior Vice President, Investment Specialist
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Nate Mahrer

Nate Mahrer 

  • Senior Vice President, Senior Equity Analyst
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Traver Davis

Traver Davis 

  • Vice President, Equity Analyst
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