Investment Objective
The Aggressive Growth team seeks capital appreciation.
Benchmark
Russell 3000 Growth Index
Investment Philosophy
The strategy invests primarily in common stocks of companies the portfolio managers believe are experiencing, or will experience, growth in earnings exceeding the average rate of earnings growth of the companies which comprise the S&P 500 Index. The strategy may invest in the securities of large, well-known companies offering prospects of long-term earnings growth. However, because higher earnings growth rates are often achieved by small- to medium-sized companies, a significant portion of the strategy's assets may be invested in the securities of such companies.
The portfolio managers emphasize individual security selection while diversifying the strategy's investments across industries, which may help to reduce risk. The portfolio managers focus primarily, but not exclusively, on emerging growth companies that have passed their "start-up" phase and show positive earnings and the prospect of achieving significant profit gains beginning in the two to three years after the strategy acquires their stocks. When evaluating an individual stock, the portfolio managers consider whether the company may benefit from:
- New technologies, products or services
- New cost reducing measures
- Changes in management
- Favorable changes in government regulations
Investment Process
- Initial Universe of Emerging Growth Companies
- Fundamental Research and Bottom-up Security Selection
- Portfolio Construction
- Hold and Monitor
- Review/Sell Process