To outperform the Russell 3000 without commensurately higher risk.
Established on October 1, 1991, the All Cap Growth portfolio strategy’s goal is to achieve superior long-term equity returns by investing in growth stocks. The portfolio is concentrated and typically consists of 30 to 60 long positions. These positions are in stocks of U.S.-based companies that we believe 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 or foreign, trade on U.S. stock exchanges.
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. Investments are chosen from companies with market capitalizations in the range of $50 million to more than $300 billion – effectively all capitalization ranges. All investments are researched prior to investment and closely followed after being put into the portfolio. Although not all of our purchases result in long-term holdings, we generally purchase securities with the idea of holding them in the client’s account for a year or longer.
Stocks will be sold from the portfolio and replaced when the portfolio manager believes a better investment is available, when the portfolio manager believes the company is overvalued relative to its expected growth potential, when a company’s outlook has fundamentally changed, or to limit portfolio concentration. The portfolio will usually be fully invested in equities. The portfolio manger may raise cash as a percent of the portfolio by selling investments when he believes market conditions warrant having increased cash levels.
Assets Under Management: $45 Million*
Annualized Return Since Inception: 12.33 percent**
Portfolio Manager: Edward P. Hemmelgarn
*As of March 31, 2018.
**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.