Small Cap Growth

Bottom-Up Approach
Disciplined Buy & Sell Criteria

Benefitting from discovery and rediscovery

Profile

Philosophy

Process

— Disciplined investment process consistently executed since 1976
— Seasoned investment team with an average of 27 years of experience
— Assets under management $1.9 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.