Small/Mid Cap Growth Fund
The Small/Mid Cap Growth Fund seeks long-term capital growth from investments in common stocks or other equity securities
Primary Benchmark:
Russell 2500 Growth Index
Portfolio Management
Mark Burns, CFA
John Slavik, CFA
Total Fund Assets (as of 12/31/2020):
$76.5 million
Lipper Category:
Small-Cap Growth Funds
Morningstar Category:
Mid-Cap Growth
Strategy Highlights
- Our goal is a lower volatility approach to high growth investing
- Active stock selection primarily drives returns by focusing on what we define as high quality "emerging winners" that may benefit from secular growth stories
- Bottom-up portfolio construction is based on fundamental research and discounted cash flow valuation analysis
- Idea generation includes an internally developed growth screen
- Risk management approach integrated throughout the process, including a clear stop/loss discipline to help manage downside risk
- Turnover typically 30-80%; typically 65 to 85 stocks; position size: typically 0.75% to 3%
- Sector weightings limited to +/- 50% of sectors greater than 10% of benchmark allocation
- Stock selection focuses primarily on companies with a market capitalization between $1.0 to $8.0 billion (at purchase); $18 billion maximum
- Recent IPOs and early-stage (unprofitable) companies are limited* in the portfolio
Investment Strategy
- The fund normally invests at least 80% of its net assets (plus any borrowings made for investment purposes) in the equity securities of small/mid-cap companies, including preferred stocks, warrants, securities convertible into common or preferred stocks and other equity-like interests in an entity
- The fund may invest the rest of its assets in companies of any size, including large-capitalization companies. In addition, the fund may invest any portion of its assets in securities of Canadian issuers and up to 20% of its assets in other foreign securities, including emerging markets securities
About Risk
- Equity securities are volatile and can decline significantly in response to broad market and economic conditions.
- Investments in small and mid-size companies can be more volatile than those of larger companies.
- Growth stocks may be more sensitive to market conditions than other equities as their prices strongly reflect future expectations.
- Foreign and emerging market securities may be subject to greater political, economic, environmental, credit, currency and information risks. Foreign securities may be subject to higher volatility than US securities due to varying degrees of regulation and limited liquidity. These risks are magnified in emerging markets.
*Typically, unprofitable companies or recent IPOs are limited to the greater of 10% of the portfolio or 50% of the benchmark weighting.
1As of the most recent prospectus, the investment advisor has contractually agreed to waive fees and/or reimburse expenses (with certain exceptions) once the expense limitation of the fund has been exceeded. This arrangement is set to expire on 1/31/21. When an expense limitation has not been exceeded, the fund may have similar expense ratios.
The Russell 2500 Growth Index is an unmanaged index that measures the performance of the small-cap growth segment of the US equity universe. It includes those Russell 2000 companies with higher price-to-value ratios and higher forecasted growth values. Indices are unmanaged and do not incur fees. It is not possible to invest directly in an index.
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Primary Benchmark:
Russell 2500 Growth Index
Year-to-Date Performance as of 1/14/2021 | | Class N | Class I |
|---|
| | 4.36% | 4.37% |
Month-End Performance as of 12/31/2020 Cumulative
Total Return | Class N | Class I |
|---|
| 3 month | 19.17% | 19.09% | | Year-to-date | 31.66% | 31.56% |
Average Annualized
Total Return | Class N | Class I |
|---|
| Inception Date | 10/1/2019 | 6/30/2015 | | 1 Year | 31.66% | 31.56% | | 3 Years | N/A | 17.68% | | 5 Years | N/A | 18.17% | | Since Inception | 35.00% | 14.94% |
Quarter-End Performance as of 12/31/2020 Cumulative
Total Return | Class N | Class I |
|---|
| 3 month | 19.17% | 19.09% | | Year-to-date | 31.66% | 31.56% |
Average Annualized
Total Return | Class N | Class I |
|---|
| Inception Date | 10/1/2019 | 6/30/2015 | | 1 Year | 31.66% | 31.56% | | 3 Years | N/A | 17.68% | | 5 Years | N/A | 18.17% | | Since Inception | 35.00% | 14.94% |
|
Lipper Ranking as of 12/31/2020 | | Class N | Class I |
|---|
| 1 Year | 400/670 | 403/670 | | 3 Years | N/A | 310/627 | | 5 Years | N/A | 226/539 | | 10 Years | N/A | N/A | | Lipper Category: Small-Cap Growth Funds |
Morningstar Ranking as of 12/31/2020 | | Class N | Class I |
|---|
| 1 Year | 397/604 | 400/604 | | 3 Years | N/A | 373/564 | | 5 Years | N/A | 221/504 | | 10 Years | N/A | N/A | | Morningstar Category: Mid-Cap Growth |
Lipper and Morningstar rankings are based on total returns calculated by each ranking entity. Rankings do not take into account sales charges, if applicable, but include reinvestment of dividends and capital gains, if any.
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Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results. Total return and value will vary and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted. Returns include changes in share price and reinvestment of dividends and capital gains, if any.
Lipper Analytical Services Inc., a Thomson Reuters Company, is a nationally recognized organization that provides performance information for mutual funds. Copyright 2020 © Reuters. All rights reserved. Any copying, republication or redistribution of Lipper content is expressly prohibited without the prior written consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.
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Monthly as of 11/30/2020
| Characteristics | |
|---|
| Number of Holdings | 84 | | P/E (trailing 12 months) | 37.38 | | P/E (forward 12 months) | 36.54 | | 3-5 Year EPS Growth | 15.52 | | ROE (1 year equal weighted) | 18.09 | | Annual Portfolio Turnover as of 9/30/2019 | 65% |
|
| Sector Distribution | |
|---|
| Information Technology | 31.0% | | Health Care | 26.6% | | Industrials | 16.8% | | Consumer Discretionary | 12.3% | | Financials | 6.5% | | Consumer Staples | 4.9% | | Cash | 1.8% | |
Portfolio composition statistics are from the adviser’s internal system and may not match the fund’s regulatory documents.
Due to rounding, market capitalization and sector distribution totals may not equal 100%. This portfolio is actively managed and holdings are subject to change. There is no guarantee the Fund continues to invest in securities referenced. Reference to specific securities or holdings should not be considered recommendations for action by investors.
P/E (trailing) is the sum of a company's price-to-earnings, calculated by dividing current stock price by trailing earnings per share for the past 12 months. P/E (forward) measures price-to-earnings ratio using forecasted earnings for the price-to-earnings calculation; the forward measure is not a forecast of the fund’s performance. 3-5 Year EPS Growth is sourced from FactSet and based on long-term EPS growth rate estimates gathered directly from brokers. The portfolio and benchmark statistic is a weighted average of company level estimates. ROE (1-year equal weighted) is the 1-year ROE of all holdings divided by number of holdings. Median active share indicates the proportion of the portfolio’s holdings (by market value) that is different than the benchmark. A higher active share indicates a larger difference between the benchmark and the portfolio.
Quarterly as of 9/30/2020
| Characteristics | Fund | Index |
|---|
| Number of Holdings | 82 | 1291 | | P/E (trailing 12 months) | 34.46 | 29.28 | | P/E (forward 12 months) | 34.64 | 28.17 | | 3-5 Year EPS Growth | 18.23 | 20.73 | | ROE (1 year equal weighted) | 17.61 | 18.00 | | Median Active Share (since inception) | 86.60% | | | Annual Portfolio Turnover as of 9/30/2019 | 65% | |
| Market Capitalization | Fund | Index |
|---|
| > $10 Billion | 33.7% | 22.7% | | $5 to 10 Billion | 33.5% | 26.0% | | $3 to 5 Billion | 24.0% | 21.4% | | < $3 Billion | 5.4% | 29.9% | | Cash & Equivalents | 3.4% | 29.9% | |
| Sector Distribution | Fund | Index |
|---|
| Information Technology | 31.0% | 29.1% | | Health Care | 24.7% | 30.6% | | Industrials | 15.3% | 11.8% | | Consumer Discretionary | 12.3% | 12.0% | | Financials | 7.7% | 4.1% | | Consumer Staples | 5.6% | 3.0% | | Materials | 0.0% | 3.1% | | Real Estate | 0.0% | 2.7% | | Communication Services | 0.0% | 2.5% | | Utilities | 0.0% | 1.0% | | Energy | 0.0% | 0.1% | | Cash | 3.4% | 0.0% | |
Portfolio composition statistics are from the adviser’s internal system and may not match the fund’s regulatory documents.
Due to rounding, market capitalization and sector distribution totals may not equal 100%. This portfolio is actively managed and holdings are subject to change. There is no guarantee the Fund continues to invest in securities referenced. Reference to specific securities or holdings should not be considered recommendations for action by investors.
P/E (trailing) is the sum of a company's price-to-earnings, calculated by dividing current stock price by trailing earnings per share for the past 12 months. P/E (forward) measures price-to-earnings ratio using forecasted earnings for the price-to-earnings calculation; the forward measure is not a forecast of the fund’s performance. 3-5 Year EPS Growth is sourced from FactSet and based on long-term EPS growth rate estimates gathered directly from brokers. The portfolio and benchmark statistic is a weighted average of company level estimates. ROE (1-year equal weighted) is the 1-year ROE of all holdings divided by number of holdings. Median active share indicates the proportion of the portfolio’s holdings (by market value) that is different than the benchmark. A higher active share indicates a larger difference between the benchmark and the portfolio.