Large Cap Equity

Our Large Cap equity strategy seeks to construct a blended core portfolio that invests in large cap growth and value stocks that will—through superior stock selection—outperform the S&P 500 Index and the Russell 1000 Index over a market cycle. Our strategy combines our style specific large growth and a value component in order to create a blended style core portfolio. Growth stock and value stock investing require a different skill set from a research standpoint. By combining these two disciplines, our core clients benefit from two specialized teams of investment professionals. While our growth and value stock selection is given equal importance in terms of portfolio construction, our clients also benefit from our ability to alter the blend of the growth versus value components.

Growth Portfolio:

  • Seeks to invest in companies with above average growth prospects
  • Does not follow the traditional strategy of owning the largest growth stocks simply because they are in the Index
  • As opposed to many other large cap growth managers, is not “index-like”
  • Uses the Russell 1000 Index in its entirety as our universe for stock selection, as true style-specific indices (R1000 Growth / R1000 Value) often result in missed growth opportunities
  • Tends to de-emphasize the mega-cap companies and focus on stock opportunities that have greater growth potential
  • Looks for the next Starbucks before it is recognized. A portion of our large cap growth portfolio is dedicated to buying stocks that we believe are in the early stages of their growth lifecycles
  • Holds 50-60 stocks whose names are likely different from other large cap growth managers

Our Value Portfolio:

  • Employs a disciplined process that incorporates three tenets
  • Is focused on value-based analysis
  • Analyzes quality of reporting
  • Utilizes a proprietary quantitative system that provides a dynamic basis for security selection
  • Holds between 50-100 value stocks

Our multi-pronged approach adds consistency to our performance by utilizing a diverse set of inputs. Our process is intuitive, repeatable, and allows us to effectively analyze large numbers of companies on a consistent basis across sectors. Position weighting is generally equal, but we will employ larger or smaller positions determined by our conviction in a company’s prospects. Our goal is to minimize turnover and be patient with our holdings, but if one of our objective metrics deteriorates, we will reevaluate the position based on the new information.

Strategy Performance & Characteristics