Small Cap Growth
Overview
A long-only, capital appreciation focused, small cap growth equity strategy invested exclusively in companies that have achieved profitability. Bottom-up stock selection is used to build a diversified, high-conviction portfolio of 40-55 stocks with market capitalizations generally between $200 million and $7 billion.
The objective of the Small Cap Growth strategy is to participate in up-markets and protect in down-markets in order to outperform its Russell 2000 Growth Index benchmark on a net of fees basis over a full market cycle and at lower levels of risk, as defined by the standard deviation of returns.
Investment Philosophy
Profitability provides tangible evidence of the viability of a company’s business model, increasing the probability of sustainable earnings growth and price appreciation.
The use of traditional research and valuation metrics is more insightful and reliable when applied to profitable companies, compared to the speculation necessary when analyzing unprofitable enterprises.
What differentiates Campbell Newman Small Cap Growth
Discipline
We only buy the stocks of companies that are profitable on a trailing 4-quarters basis
Judgement
Proprietary bottom-up research/stock selection process; portfolio managers also serve as analysts
Results
Absolute return focus with upside participation, downside protection in a low turnover portfolio of carefully selected stocks
