To outperform the Russell 2000 Growth Index with similar or less volatility.
Established July 1, 2004, the Small Cap Growth portfolio strategy seeks to achieve superior long-term equity returns by investing in small capitalization growth stocks. In general, Shaker Investments defines small capitalization as companies with a range of market values between $50 million and $3.0 billion.
Our objective is long-term capital appreciation while outperforming the Russell 2000 Growth Index with similar volatility. The portfolio is concentrated with typically 25-40 positions. These positions are in stocks of U.S.-based companies that the portfolio manager believes are capable of achieving 15-20 percent annual growth in earnings over a three-to-five year period. In addition to U.S.-based companies, a small number of foreign-based stocks or ADR’s may be included in the portfolio. All investments, both domestic and foreign, trade on U.S. stock exchanges.
In pursuing superior long-term gains, Shaker tries to emphasize stock picking rather than sector selection. The sector weightings in the Small Cap Growth are tracked and the portfolio manager will seek to limit the portfolio’s sector concentrations to within plus or minus 10 percent of the sector weightings of the Russell 2000 Growth Index sector weights.
Shaker seeks to enhance the after-tax returns realized by portfolio clients by investing in companies with excellent long-term potential and deferring the recognition of gains (when not in conflict with the goal of maximizing returns) until they can be recognized and taxed as long-term capital gains.
Assets Under Management: $24 Million*
Average Annual Return Inception to date: 8.28 percent**
Portfolio Managers: Edward P. Hemmelgarn and Sasha Kostadinov, CFA
*As of December 31, 2017.
**Shaker returns are net of fees and are estimated for most recent three-month period. Past performance is not predictive of future returns. An investment in this strategy is speculative and involves a high degree of risk, including potential loss of principal. There is no guarantee that the investment objective will be achieved, or that the investment strategy will be profitable.