Focus on Growth
Target companies with potential to produce sustainable earnings and cash flow growth; evaluate the long-term market opportunity and competitive structure of the industry seeking to target leaders and emerging leaders.
Strategy Overview
The strategy is managed using a bottom-up research-driven, fundamental approach to build a growth-oriented, small capitalization portfolio. Growth is not defined by an index, but rather by our broad search across industries for companies with sustainable business models and attractive free cash flow characteristics that the teams believe will foster their ability to grow faster than peers over a multi-year horizon.
Key Features
Emphasis on Quality
Seek companies with strong and improving competitive positions in attractive markets; identify experienced and talented management teams as well as financial strength reflected in the capital structure, gross and operating margins, free cash flow generation and returns on capital.
Valuations
Consider a range of potential outcomes based on an assessment of multiple scenarios; evaluate whether, in the team’s view, security prices fully reflect the balance of sustainable growth opportunities relative to business and financial risks.
