Staying Focused on Secular Growth
As interest rates and inflation pressures climb, Portfolio Manager Doug Rao says it is becoming all the more important to focus on companies with secular tailwinds, pricing power and competitive advantages.
INVESTMENT STRATEGIES
Concentrated Growth
Jump to a section
Overview
We believe that constructing a concentrated portfolio of quality growth companies will allow us to outperform our benchmark over time. We define quality as companies that enjoy sustainable “moats” around their businesses, potentially allowing companies to grow faster, with higher returns, than their competitors. We believe the market often underestimates these companies’ sustainable competitive advantage periods.
Investment Approach
- Fundamental research-riven approach, investing with conviction in 30 to 40 of our best large cap growth ideas where we believe we have a differentiated view from the market.
- Seeks companies with sustainable competitive advantages that capitalize on their competitive moat to grow market share globally over a multi-year period. Emphasizes dominant companies driving innovation and change through disruptive technologies, products or business models.
- Stock-picker’s portfolio designed to deliver long-term growth of capital with a high conviction approach. Seeks to use risk wisely, leveraging our best ideas in a concentrated portfolio to drive potential outperformance of the index over time.
High Conviction Approach
Innovative Wide-Moat Companies
Stock Selection Drives Return
Portfolio Management
Featured Insights
Performance
RETURNS
| Inception: Oct 01, 1994 | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inception |
|---|---|---|---|---|---|---|---|
| Composite Gross | 2.85% | 27.18% | 8.79% | 18.96% | 16.19% | 14.16% | 14.54% |
| Composite Net | 2.69% | 26.59% | 8.10% | 18.21% | 15.46% | 13.49% | 13.74% |
| Russell 1000® Growth Index | 1.49% | 23.30% | 3.71% | 16.89% | 13.39% | 14.94% | 9.72% |
| Inception: Oct 01, 1994 | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inception |
|---|---|---|---|---|---|---|---|
| Composite Gross | 2.85% | 27.18% | 8.79% | 18.96% | 16.19% | 14.16% | 14.54% |
| Composite Net | 2.69% | 26.59% | 8.10% | 18.21% | 15.46% | 13.49% | 13.74% |
| Russell 1000® Growth Index | 1.49% | 23.30% | 3.71% | 16.89% | 13.39% | 14.94% | 9.72% |
Past performance cannot guarantee future results. Investing involves risk, including the possible loss of principal and fluctuation of value. Returns greater than one year are annualized. Returns are expressed in U.S. dollars. Composite returns are net of transaction costs and gross of non-reclaimable withholding taxes, if any, and reflect the reinvestment of dividends and other earnings.
The gross performance results presented do not reflect the deduction of investment advisory fees and returns will be reduced by such advisory fees and other contractual expenses as described in the individual contract and Form ADV Part 2A.
Net performance results do not reflect the deduction of investment advisory fees actually charged to the accounts in the composite but they do reflect the deduction of model investment advisory fees based on the maximum fee rate in effect for the respective time period, adjusted for performance-based fees where applicable. Actual advisory fees may vary among clients invested in the strategy shown and may be higher or lower than model advisory fees. Returns for each client will be reduced by such fees and expenses as negotiated in any client contract as discussed in Form ADV Part 2A.
For a complete list of holdings as of the most recently available disclosure period, contact us.
The gross performance results presented do not reflect the deduction of investment advisory fees and returns will be reduced by such advisory fees and other contractual expenses as described in the individual contract and Form ADV Part 2A.
Net performance results do not reflect the deduction of investment advisory fees actually charged to the accounts in the composite but they do reflect the deduction of model investment advisory fees based on the maximum fee rate in effect for the respective time period, adjusted for performance-based fees where applicable. Actual advisory fees may vary among clients invested in the strategy shown and may be higher or lower than model advisory fees. Returns for each client will be reduced by such fees and expenses as negotiated in any client contract as discussed in Form ADV Part 2A.
For a complete list of holdings as of the most recently available disclosure period, contact us.
Commentary & Literature
2Q19 Portfolio Commentary Highlights
- Stocks gained ground in the second quarter, but were volatile.
- The Portfolio outperformed its benchmark.
- Going forward, we like how our portfolio is positioned for the current market backdrop. We believe there is less economic sensitivity in our portfolio than the broader index.