Large Cap Growth

Translating free cash flow growth into returns

The Peregrine Large Cap Growth team seeks to translate high portfolio cash flow growth directly into client investment returns. The combination of 12% minimum secular growth and extended cash flow duration is key to driving strong long-term absolute and relative returns.

Characteristics include:

— A focus on a universe that provides the opportunity for high growth, lower operational risk and excess returns
— An investment mindset beyond 5-7 years, 20-25% annual turnover
— A high conviction portfolio concentrated into 25-35 holdings
— Opportunity for growth drives portfolio investment decisions, not the benchmark

Long duration, high growth businesses create significant value over time, extending and expanding their competitive advantage periods.

— Continual adjustment of long-term expectations is at the center of our variant view.
— Forward-looking process not dependent on screens.
— Pursue sustainable long-term top-line drivers through innovation, recurring revenue streams, and large addressable markets.
— Look for high probability of ongoing origination of new competitive moats.
— Focus on corporate management teams willing and able to invest beyond five years.