The Mid Cap Growth seeks to generate superior risk-adjusted investment performance over a full market cycle relative to the Russell Mid Cap Growth Index
Russell Midcap Growth Index
- Leverages same process used in managing Small Cap Growth strategy since 4/2005 and Small/Mid Cap Growth strategy since 1/2012
- Seeks to identify under-exploited, high-growth, mid-cap companies with positive fundamentals and attractive risk/reward profiles
- 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 45-55 stocks; position size: typically 1% to 4%
- Sector weightings limited to +/- 50% of sectors greater than 10% of benchmark allocation
- Stock selection focuses primarily on companies with a market capitalization between 75% to 125% of the benchmark's weighted average market cap
- Recent IPOs and early-stage (unprofitable) companies are limited* in the portfolio
*Typically, unprofitable companies or recent IPOs are limited to the greater of 10% of the portfolio or 50% of the benchmark weighting.
The Mid Cap Growth Composite includes all discretionary accounts with market values greater than $1 million managed by Loomis Sayles that seek to identify under-exploited, high growth, mid-cap companies with positive fundamentals and attractive risk/reward profiles. The strategy objective is to generate superior risk-adjusted performance over a full market cycle relative to the Russell Mid Cap Growth Index, and generally within the market capitalization range of the Index. The Composite inception date is January 1, 2020. The Composite was created in 2020.