Concentrated Growth Managed Account

We believe our differentiated view from the market drives growth where growth is scarce, positioning our investments to outperform the index over time

Overview

ABOUT THIS PORTFOLIO

Concentrated large-cap growth portfolio, leveraging our three decades of experience in high-conviction investing. By investing in our best wide-moat ideas, the Portfolio seeks to add excess returns over the long term. Given its concentrated nature, the Portfolio may exhibit moderately higher volatility than its benchmark.

WHY INVEST IN THIS PORTFOLIO 

High-Conviction Approach
Fundamental research-driven approach, investing with conviction in 30 to 40 of our best large-cap growth ideas where we believe we have a differentiated view from the market.

Innovative Wide-Moat Companies
Seeks companies with sustainable competitive advantages that capitalize on their competitive moat to grow market share globally over a multi-year period. Emphasizes dominant companies driving innovation and change through disruptive technologies, products or business models.

Stock Selection Drives Return
Stock picker’s portfolio designed to deliver long-term growth of capital with a high-conviction approach. Seeks to use risk wisely, leveraging our best ideas in a concentrated portfolio to drive potential outperformance of the index over time.

PORTFOLIO MANAGEMENT

Doug Rao

Portfolio Manager

Industry since 1998. Joined Firm in 2013.

Nick Schommer, CFA

Portfolio Manager

Industry since 2007. Joined Firm in 2013.

Performance

RETURNS (%) (As of 09/30/2019)
Composite Pure Gross* Composite Net Russell 1000® Growth Index
 
3M YTD 1YR 3YR 5YR 10YR Since Inception
(10/01/1994)
Composite Pure Gross* 2.73% 26.62% 8.56% 18.25% 15.65% 14.21% 14.58%
Composite Net 1.98% 23.91% 5.41% 14.84% 12.31% 10.91% 11.24%
Russell 1000® Growth Index 1.49% 23.30% 3.71% 16.89% 13.39% 14.94% 9.73%
RETURNS (%) (As of 09/30/2019)
Composite Pure Gross* Composite Net Russell 1000® Growth Index
 
3M YTD 1YR 3YR 5YR 10YR Since Inception
(10/01/1994)
Composite Pure Gross* 2.73% 26.62% 8.56% 18.25% 15.65% 14.21% 14.58%
Composite Net 1.98% 23.91% 5.41% 14.84% 12.31% 10.91% 11.24%
Russell 1000® Growth Index 1.49% 23.30% 3.71% 16.89% 13.39% 14.94% 9.73%

RETURNS-BASED STATISTICS (Composite As of 09/30/2019)

RISK / REWARD
VS. Russell 1000® Growth Index
3YR 5YR
Information Ratio 0.40 0.64
Alpha 2.16 2.15
Tracking Error 3.40 3.55
Beta 0.94 0.99
R-squared (%) 93.45 92.88
UP/DOWN MARKET CAPTURE (%)
VS. Russell 1000® Growth Index
3YR 5YR
Up Capture Ratio 95.60 103.70
Down Capture Ratio 81.32 90.14
STANDARD DEVIATION 3YR 5YR
Concentrated Growth Managed Account 12.90 13.28
Russell 1000® Growth Index 13.30 12.88
SHARPE RATIO 3YR 5YR
Concentrated Growth Managed Account 1.30 1.11
Russell 1000® Growth Index 1.16 0.97

Portfolio

Index represents the Russell 1000® Growth Index.

(As of 10/31/2019)
% of Rep Account
Microsoft Corp 7.58
Mastercard Inc 5.86
Alphabet Inc 5.66
salesforce.com Inc 4.67
Amazon.com Inc 4.56
Total 28.33
View full holdings
Portfolio Characteristics (As of 10/31/2019)
  REP ACCOUNT INDEX
Number of Holdings
Equity Issues
40 529
Market Capitalization
Weighted Average
$336.95B $349.37B
Portfolio Turnover Rate
(1-year trailing)
44.68% -
Price/Earnings Ratio
(1-year forward)
34.92 25.83
Price/Book Ratio
(1-year forward)
9.61 10.25
Earnings Growth Rate
(1-year forward)
10.64% 9.03%

Sector Allocation % OF REP ACCOUNT % of Index % OF REP ACCOUNT % of Index (As of 10/31/2019)
Information Technology 34.97 37.91
Communication Services 14.34 11.57
Health Care 12.54 14.64
Consumer Discretionary 10.79 14.21
Industrials 9.18 9.59
Financials 7.08 3.12
Materials 5.29 1.41
Real Estate 3.01 2.47
Cash & Equivalents 2.80 -
Regional Allocations % OF REP ACCOUNT % of Index % OF REP ACCOUNT % of Index (As of 10/31/2019)
North America 92.98 99.65
Europe 2.02 0.12
Asia/Pacific Ex Japan 1.47 0.22
Latin America 0.73 0.01
Cash & Equivalents 2.80 -
MARKET CAPITALIZATION RANGE OF EQUITY HOLDINGS % OF REP ACCOUNT % OF INDEX % OF REP ACCOUNT % OF INDEX (As of 10/31/2019)
Over $100B 60.53 59.25
$50B to $100B 23.24 14.98
$10B to $50B 12.15 20.26
$5B to $10B 1.28 4.76
Developed VS Emerging Markets % OF REP ACCOUNT % of Index % OF REP ACCOUNT % of Index (As of 10/31/2019)
U.S. 92.98 99.64
Non-U.S. Emerging 2.20 0.15
Non-U.S. Developed 2.02 0.21
Cash & Equivalents 2.80 -

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