Large Cap Growth Investment Philosophy

• Fundamentally strong companies with above-average earnings growth
• Purchased at a reasonable price
• Double-layer price appreciation as earnings increase and price-to-earnings ratio (P/E) expands
• Concentrated portfolio
• Long-term outlook
• Benchmark is the Russell 1000® Growth Index

Large Cap Growth Investment Process

Identify and Evaluate Companies

• Market Capitalization of $5 Billion and over at purchase
• Companies with established products and/or services as opposed to companies with growth prospects stemming from other factors such as temporary pricing increases or speculative products 

In Depth Analysis

• Historical sales and earnings trends, profit margins, future growth prospects, debt level, management
• Price-to-earnings ratio versus expected growth over the next three to five years (PEG ratio)
• Reasonable valuations
• In-depth company and industry review, thesis development

Portfolio Construction

• New securities purchased into the portfolio at 3-5% position size
• Sector exposure actively managed relative to the Russell 1000® Growth Index
• Concentrated portfolio of 25-30 holdings
• No direct competitors

Sell Discipline

• Continual review of fundamentals which comprise each company’s investment thesis; should the original criteria for purchase deteriorate, the team will eliminate a position entirely
• Will generally hold position until its long-term fundamental growth slows to a below average level