The US Large Cap Growth Equity strategy seeks to invest in large-cap companies with high potential earnings growth. We focus on companies with solid fundamentals poised to benefit from thematic tailwinds and specific growth catalysts. The US Large Cap Growth Equity strategy has no single definition of growth. We believe maintaining exposure to the broad growth style category supports outperformance over most market environments. At the industry level, growth is defined by specific industry growth drivers. The key to growth in each sector/industry can be different. Our career analysts are industry experts responsible for identifying the key aspects of growth within their respective industries. The strategy seeks to invest in companies with strong or accelerating growth rates across revenue, earnings, free cash flow and market share. We look to exploit disparities between a company’s stock price and potential growth opportunities for a stock. Other areas that may be underappreciated include:
- Brand strength
- Cyclical and secular trends
- Product development/innovation
- Supply/demand cycle
- Capital allocation
- End-market health
The US Large Cap Growth Equity strategy seek to generate excess return relative to the Russell 1000® Growth Index over a full market cycle. The strategy seeks to outperform through security selection, utilizing a disciplined fundamental research approach within the framework of risk control that optimizes idiosyncratic (or stock-specific) risk.
We believe successful growth investing is best achieved through a process that optimizes information, ensures freedom for decision making, and requires accountability within a framework of oversight and risk management. We believe positive returns can be generated by identifying companies most leveraged to robust growth drivers. In our view, large sector overweights and underweights can lead to inconsistent returns while increasing risk and tracking error. Hallmarks of our approach include:
- Diversified Approach to Growth Investing: We do not apply a single definition of growth at the portfolio level; rather analysts define growth at the industry level. We believe this enables the most promising growth opportunities driven by the relevant metrics within each area of coverage.
- Capital Distribution: We distribute capital across our team of analysts to ensure diversification and minimize allocation effect from capital concentration.
- Stock Selection Drives Results: Career analysts drive stock selection, resulting in a high-conviction portfolio.
- Clear Accountability: Portfolio managers and analysts understand their specific responsibilities.
- Risk Management: We manage risk at the portfolio level, which includes factor analysis and stock-specific risk analysis.
Please note that all investment strategies involve risk.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.