Institutional Strategies

Large Cap Growth

Strategy focuses on large capitalization U.S. growth-oriented companies believed to have dominant market positions and established competitive advantages. Through a primarily bottom up investment process, the portfolio manager adheres to a disciplined three step process to build a focused portfolio of only the securities with the highest conviction.

Investment Philosophy

Generic growth stock investing is inherently challenging

  • Failure rate of growth companies is very high
  • Risk is often underestimated
  • Most growth investors overpay for short-term earnings growth and underpay for enduring, structural earnings power

Significant, long-term excess returns can potentially be achieved by

  • Focusing on a smaller subset of unique business franchises, which the team feels can potentially increase the odds of success
  • Having a mindset geared to methodically avoiding common mistakes by emphasizing franchise power and earnings sustainability over earnings growth rates

THE PORTFOLIO MANAGEMENT TEAM SEEKS
THE PORTFOLIO MANAGEMENT TEAM SEEKS

Investment Process
Investment Process

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Key Features

Composite Performance History Since 1/1/1995
Benchmark Russell 1000 Growth Index
Security Concentration The portfolio typically holds 40–60 positions with concentration in the top 15 holdings of approximately 40%
Turnover range Typically 40–75%
Tracking Error Residual of the portfolio's investment approach – not actively managed, but has historically ranged from 400–700 basis points
Sector Ranges Limited to 2x the major sectors weight in the benchmark
Position Size Individual company weight is limited to 5% of the benchmark unless the specific company has a greater than 5% representation in the index (then we will constrain the weight to C+2%) – we have no minimum sector exposure mandate
Cash Allocation Typically below 5%
Investment Vehicles Institutional Separate Account
Collective Investment Trust
Variable Insurance Portfolio
U.S. Mutual Fund: Institutional Share Class