Strategy Inception: 4/30/2010
Primary Capitalization: Small Cap
Primary Style Emphasis: Growth
Benchmark: Small Cap Growth
Holdings Range: 70-90
Genesis Small Growth Equity
Strategy Inception: 4/30/2010
Sawgrass Genesis Small Growth seeks to exploit investor behavior that we believe leads to persistent overvaluation of companies experiencing rapid rates of change at the expense of those with more consistent, less volatile growth. Using our internally developed quantitative models and our experience with risk management techniques, we select leaders from the small cap growth universe.
The Sawgrass Genesis Small Growth decision process begins with a universe of 1200 companies with market caps between $300M and $4.5B. Applying Sawgrass’ proprietary, sector-specific, quantitative model results in an investable universe of 200 stocks.
Using a bottom up approach we analyze a company’s profitability; business valuation; equity valuation; earnings quality; and sales, earnings and margin stability. We favor stocks that exhibit low price volatility and are consolidating or positively trending.
The stock(s) with the best mix of quantitative and qualitative data are selected for the best mix of quantitative and qualitative data are selected for purchase resulting in a diversified portfolio of 70-90 stocks. Positions are purchased and weighted with particular consideration given to each stock’s impact on risk factors as well as the overall risk profile of the portfolio.
Positions may be pyramided into or gradually sold out of but are typically purchased/sold in whole. Winners are trimmed to prevent excessive portfolio weighting/risk. Stocks are sold primarily when the underlying technical factors of a stock begin to deteriorate.
Lead Portfolio Manager
Patrick Riley, CFA
Mr. Riley is a Partner at Sawgrass and the lead portfolio manager on the firm’s Genesis Small Growth Equity product. He is responsible for generating new ideas for both the small and large growth equity portfolios by managing a new ideas “on-deck” portfolio specific to each product, as well as assisting in the maintenance of the firm’s proprietary quantitative modeling system.
He serves on the firm’s equity research committee.
A different kind of equity manager
Our investment approach emphasizes growth stocks with a consistent and stable earnings pattern, accelerating earnings estimates and companies with greater earnings potential than the market and their peer group. We combine quantitative models with bottom-up fundamental research into a consistent and structured investment discipline. We believe that in combination, these elements allow us to identify companies early in their cycle of positive earnings and estimates changes, which can offer our clients above average stock appreciation potential.
The Sawgrass Advantage
- Fully aligned interests between our team and our clients
- Continuity of leadership and low team turnover
- Enhanced investment expertise through long-term experience
- Provide up-market participation with desirable down-market capture resulting in alpha and low volatility over full market cycles
- Demonstrated success in fulfilling investor needs
- Consistent, repeatable, lower volatility profile and excess returns over time based on sound judgment and mature perspective
Please refer to this product’s Performance Disclosure Statement.
- Dependable, knowledgeable and consistent service
- High confidence in understanding of institutional client challenges and successful outcomes with a commitment to educate and serve
- Responsive to client needs