Small Cap Growth
Bottom-Up Approach
Disciplined Buy & Sell Criteria
since
1976
rapidly
growing
companies
disciplined
valuation approach
consistent
application
of process
Profile —
Philosophy —
Process —
— Disciplined investment process consistently executed since 1976
— Seasoned investment team with an average of 25 years of experience
— Assets under management $1.7 billion
— Active portfolio management involvement with client relationships
Capitalizing on Information Gaps
The philosophy of the Small Cap Growth style is based on the belief that information gaps exist in small rapidly growing companies, creating the potential for dramatic stock price appreciation. The investment process is designed to capitalize on information gaps—a disconnect between a stock’s price and its underlying earnings growth prospects.
Discovery Phase
Within Discovery, we target companies generating long-term earnings growth in excess of 20% that are trading at attractive valuations (or below market valuations or valuations that do not reflect that strong growth). We believe these companies will benefit not only from the duration of their rapid earnings growth, but from multiple expansion as the level and sustainability of the growth is more widely recognized and rewarded by the market.
Rediscovery Phase
Rediscovery phase companies are characterized by near-term earnings acceleration due to factors such as a change in management, a new product cycle or a cyclical upturn. We also look for companies that have assets that are undervalued. Rediscovery companies are expected to provide a minimum of 40% EPS growth over the next twelve months or sell at a 40% discount to asset value.