Growth Equity

The investment process for our Growth Equity strategy begins with a “bottom up” approach directed at examining the fundamentals of individual companies and their industries. Our research efforts are highly focused on growth companies that are leaders in their industries with growth characteristics. Because stocks that do not fit the Hartwell criteria do not distract our investment professionals, we are able to concentrate in depth on a select group of premier growth companies. Institutional portfolios hold between 45-55 stocks.

We find that growth companies tend to be concentrated in certain industry groups; consequently, our investments are focused within these sectors. However, the growth characteristics of industries change over time. We constantly reevaluate the industry groups in which we currently invest and seek to identify emerging growth opportunities.

Within each industry area, we find potential investments through an individual, company-by-company analytical process. We examine in great detail the critical variables that are most likely to influence a company’s success or failure, probing in particular for change that might create investment opportunity. This process requires an intensive, highly refined analytical effort using multiple different sources for inputs.

We believe that, through the correct selection of individual securities, we can achieve superior long-term performance for each of our investment products relative to their specific benchmarks under virtually all economic and market conditions. We are not market timers nor do we spend an inordinate amount of time analyzing macroeconomic trends.

A central tenet of our investment philosophy is that constructing a portfolio that is consistent with a meaningful theme can maximize performance. This theme should be based on longer-term secular trends that are currently being, or will be, reflected in the stock market.

We are long-term investors, not traders of shares. Successful investments are left in portfolios to compound their earnings. We aim to avoid unnecessary trading of holdings – the foundation of wealth is letting winners grow undisturbed.

Mostly importantly, we are driven by a desire to achieve superior capital appreciation for our clients. Our entire organization is structured to achieve this objective.

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