Institutional Strategies
Large Cap Growth
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
Download
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 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 |