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.