Small Cap Growth
The Investment objective of the Shaker Investments Small Cap Growth strategy is to consistently outperform the U.S. small cap growth index while maintaining an equivalent level of risk.
After identifying industries with accelerated growth, stocks are chosen based on criteria Shaker Investments has identified as key characteristics to sustainable growth.
We find those stocks that are generally between $300M and $5B that we identify as growth companies that we feel can succeed over a long period of time.
Portfolio Characteristics as of 9/30/19
|Weighted Avg. Market Cap||$5.704 Billion|
|Median Market Cap||$2.988 Billion|
|Number of Holdings||50|
|Strategy Assets Under Management||$28 Million|
|Firm AUM||$160 Million|
|Top 10 Holdings|
|Axos Financial Inc.||4.9%|
|CoStar Group, Inc.||4.6%|
|Paycom Software Inc.||4.1%|
|Paylocity Holding Corp.||4.1%|
|The Trade Desk, Inc.||3.4%|
|As of 9/30/2019||3Q 2019||YTD||1 Year||2 Years||3 Years||5 Years||Since Inception**|
|Shaker Small Cap Growth (gross)||-0.45%||21.03%||-4.05%||12.24%||14.86%||10.97%||9.31%|
|Shaker Small Cap Growth (net*)||-0.70%||20.18%||-5.01%||11.13%||13.73%||9.88%||8.23%|
|US Small Cap Equity Growth Index||-4.17%||15.34%||-9.63%||4.60%||9.79%||9.08%||8.45%|
|US Small Cap Equity Index||-2.40%||14.18%||-8.89%||2.47%||8.23%||8.19%||7.84%|
* Returns are net of 1% annual management fee.
**Inception for the Shaker Small Cap Growth strategy is 07/01/2004
Past performance is not indicative of future results. Investing involves certain risks including loss of principal. No guarantee that any specific investment will be suitable or profitable can be made.
Edward Hemmelgarn, President and Chief Investment Officer
Edward Hemmelgarn is the President and Chief Investment Officer at Shaker Investments. Edward’s primary focus is portfolio management for Shaker’s Fundamental Growth, Small Cap Growth, and alternative strategies. His research focus includes healthcare and financial services.
Prior to founding Shaker Investments in 1991, Edward was the Chief Financial Officer of Retail Banking at Ameritrust Corporation (now KeyBank). Prior to that, Edward worked at Ernst & Young focusing on mergers and acquisitions and strategic and financial management consulting.
He received a BA in Chemistry and a MBA from the Case Western Reserve University, where he also served as an instructor for numerous courses. Mr. Hemmelgarn is a former CPA.
Edward is currently a board member at the Cleveland Museum of Art. Edward is also on the Visiting Committee of Case Western Reserve University’s College of Arts and Sciences. He is a past recipient of the Outstanding Alumni Award from Case Western Reserve University’s Weatherhead School of Business. He was named Accounting Alumnus of the Year in 2003, and a recipient of Case Western Reserve University’s Department of Chemistry’s Distinguished Alumnus Award in 2016.
Edward and his wife, Jan, reside in Shaker Heights.
Sasha Kostadinov, CFA, Portfolio Manager and Research Analyst
Sasha is co-manager of the Small Cap Portfolio and conducts research on consumer discretionary, consumer staples, energy, materials, and health care sectors for all of the portfolios at Shaker Investments. He has spent more than twenty years working in the equity markets, the last thirteen with Shaker Investments.
Prior to joining Shaker Investments, he was a research analyst at Clarion Group, a Cleveland, Ohio-based long-short hedge fund. Prior to that, he was a research analyst at KeyBanc Capital Markets (formerly McDonald Investments). Prior to that, Sasha was a Financial Consultant at Smith Barney.
Sasha is a holder of the Chartered Financial Analyst designation and received his BA in Economics and Political Science and MA in Economics at Cleveland State University.
He and his wife, Ruthann, reside in Lakewood with his guitars.