U.S. Equity Small Cap Growth
Small cap companies predominately occupy the startup phase of the industry life cycle.
These companies are typically under-researched and hence inefficiently priced. Characteristically, these companies have a single differentiated product or service enabling them to take market share from larger incumbents. Key validation metrics include revenue and cash flow growth, as they typically correlate to acceptance and profitability.
We manage portfolios of approximately 60-80 growing companies within a market capitalization range of between $250 million and $2 billion at time of initial purchase. We sell names out of the portfolio above $3 billion in market cap regardless of whether it falls within the market cap range of the performance benchmark.
November 1, 2008
Russell 2000 Growth Index
Portfolio Management Team:
Tedd M. Alexander III and David E. Saunders II
Small Cap Growth
Market capitalization range of between $250 million and $2 billion.