All Cap Growth


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About All Cap

Objective:

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.

About All Cap