The US Small Cap Growth Equity strategy seeks to identify small-cap companies with high and improving gross profit asset efficiency -– businesses building structural competitive advantages while pursuing large, addressable market opportunities.
Quality growth focus
Targets small-cap companies demonstrating high levels of gross profit asset efficiency with positively trending trajectories
Disciplined discovery
A proprietary quantitative screen ranks business model quality, trajectory, revenue growth, and relative valuation
Intentional construction
Holdings are classified as compounders, dreamers, or inflectors with a systematic sell discipline and factor exposure
The strategy seeks companies with superior gross profit asset efficiency – gross profit generated relative to total assets; a measure of how productively a business converts its asset base into profit – which may be rewarded with higher valuations and outperformance over time.
Companies pursuing large market opportunities – businesses growing faster than peers, developing into category leaders, and generating excess cash – may provide both growth optionality and downside protection.
The team views the “sweet spot” as the window after initial success has been established but significant runway remains – where there is potential for patient investors focused on quality growth to find the most compelling opportunities.
A quantitative screen narrows the investable universe from approximately 2,000 names to 400–600 growth companies ranked on business model quality, improvement trajectory, revenue growth dynamics, and relative valuation.
Qualitative fundamental overlay determines whether business model improvement reflects durable structural advantage or a temporary cyclical inflection.
Portfolio construction allocates 70–90 holdings across the strategy’s proprietary growth spectrum, balancing risk across compounders, dreamers, and inflectors.
Risk management uses stress testing, monthly factor exposure analysis, and performance attribution seeking to ensure that stock-specific risk drives outcomes.
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Risk Disclosures
Investing involves risk, including the possible loss of principal.
A fund or strategy that holds a limited number of securities may be more sensitive to the price fluctuations of a single security in its portfolio and may be more volatile than a fund or strategy that holds a greater number of securities.
Investments in small and/or mid-cap companies may be more volatile than those of larger companies.
Diversification may not protect against market risk.
Growth stocks reflect projections of future earnings and revenue. These prices may rise or fall dramatically depending on whether those projections are met. These companies’ stock prices may be more volatile, particularly over the short term.
Equity securities are subject to price fluctuation and possible loss of principal.
Issuers in the information technology sector may be impacted by intense competition; dramatic and often unpredictable changes in growth rates and competition for qualified personnel; effects on profitability from being heavily dependent on patent and intellectual property rights and the loss or impairment of those rights; obsolescence of existing technology; general economic conditions; and government regulation.
Nothing presented should be construed as a recommendation to purchase or sell any security or follow any investment technique or strategy.
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Investing involves risk including the possible loss of principal. The investment capabilities described in this website involve risks due, among other things, to the nature of the underlying investments. All examples herein are for illustrative purposes only and there can be no assurance that any particular investment objective will be realized or any investment strategy seeking to achieve such objective will be successful. Past performance is not a reliable indication of future performance.
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