We believe that investing in companies with above-average earnings growth potential
provides the best opportunity for achieving superior portfolio returns over the
long term. While this is key to the process, valuation relative to our estimated
earnings growth rate is also important in selecting a stock. Our focus is on companies
that we believe can deliver attractive future annual earnings growth, with rising
return on invested capital and positive cash flow.
Our investment philosophy is grounded in fundamental research. The majority of our
analytical work is conducted internally by our skilled investment principals. We
select stocks using a bottom-up approach and position our portfolio decision-makers
as close as possible to the source of fundamental information – whether that source
is directly from a company, its suppliers, or its competitors.
All investments carry risk, including the possible loss of principal and there is
no assurance that an investment will provide positive performance over any period
of time. Growth style investing may fall out of favor and underperform other equity
investments during given periods. Certain sectors or growth stocks may shift characteristics
over a long market cycle and may not perform in line with stated benchmarks.