Broker Check

Growth Equity

We believe that:

  • Companies with improving business fundamentals (accelerating earnings growth) may be attractive and timely investments when these favorable trends are material, unanticipated and sustainable.
  • Earnings and cash flows determine the real value of a business, but sentiment can drive returns over shorter horizons.
  • Unexpected change creates investment opportunity.
  • A few observable attributes are correlated with relative returns, and portfolios emphasizing these may be more likely to outperform.
  • Strong and stable price momentum may reduce portfolio volatility and improve returns.
  • Great ideas are scarce. It is better to concentrate on a limited number of outstanding opportunities than to over diversify and dilute their contribution.

We want to invest where:

  • Business is clearly getting better (growth is accelerating), and
  • Investors have begun to recognize this improvement, but
  • Expectations are still too low.