INSTITUTIONALInstitutional 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
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 50% |
| Turnover range | Typically 30–70% |
| 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 | Maximum position size is 5%, or 2% over the index weight, if greater. |
| Cash Allocation | Typically below 5% |
| Investment Vehicles | Institutional Separate Account Collective Investment Trust Variable Insurance Portfolio U.S. Mutual Fund: Institutional Share Class SMA Model Delivery |