Strategy Inception: 1/1/1987
Primary Capitalization: Small Cap
Primary Style Emphasis: Growth
Benchmark: Small Cap Growth
Holdings Range: 40-70
Small Cap Growth Equity
Quick Facts
Product Description
Our investment philosophy focuses on extracting value from our belief in a long-term inefficiency in the small growth universe caused by investor behavior that leads to persistent overvaluation of companies experiencing rapid rates of change at the expense of those with more consistent, less volatile growth. We combine proprietary quantitative models with our fundamental research process to deliver a repeatable approach that seeks to provide our clients with longer-term outperformance with less volatility by investing in this underappreciated portion of the small growth universe. Sawgrass employs a quantitative and fundamental blended approach to select stocks for our small cap growth portfolios. The goal of our investment process is to create portfolios with attractive long term risk and reward characteristics.
Investment Process
The process begins with a sector specific quantitative scoring of a 1500 stock universe. Our proprietary modeling system evaluates twenty four factors (contained in six groupings) including business valuation, equity valuation, profitability, earnings quality, price volatility, and sales, earnings, and margin stability.
Our fundamental research process is then used for a qualitative assessment of company specific attributes, growth prospects, and risk contribution. This process includes a detailed review of the quantitative scoring, financial statement analysis, evaluation of management growth presentation, review of analyst research and estimate revisions, and a risk/reward analysis.
This blended approach helps us stay focused and consistent in building the attractively valued, profitable, lower volatility growth portfolios of between 40-70 stocks that we believe provide the best foundation for longer term outperformance on both an absolute and risk adjusted basis.
Our sell discipline focuses on four main areas. Companies are sold when earnings expectations start to decline, fundamental factors begin to experience significant changes, more attractive companies are identified, or risk profile realignment is necessary.
Lead Portfolio Manager
Dean McQuiddy, CFA
Mr. McQuiddy is a Principal of Sawgrass, directs the firm’s equity management and research efforts and is the lead portfolio manager for the Small Cap Growth Equity product.
He serves on several of the firm’s committees, including equity research, management and strategic planning.
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