The Small/Mid Cap Growth strategy seeks to identify under-exploited, high-growth, small/mid-cap companies with positive fundamentals and attractive risk/reward profiles
Primary Benchmark:
Russell 2500 Growth Index
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 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 Small/Mid Cap Growth Composite includes all discretionary accounts with market values greater than $500,000 managed by Loomis Sayles that seek to identify under-exploited, high growth, small and 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 2500 Growth Index, and generally within the market capitalization range of the Index. As of 1/1/2021 the Composite was redefined to include commingled vehicles, previously only separate accounts were included. The Composite inception date is January 1, 2012. The Composite was created in 2012