“We search for companies at the earlier stages of their life cycles with attractive business models and promising, durable growth prospects. Our goal is to build a diversified portfolio which generates excess returns through a market cycle.”
— Steven Klopukh
The Fund’s flexible mandate gives us wide latitude to invest in different types of growth companies, up and down the small/mid capitalization spectrum.
While value managers often start from a place of valuation and decide whether a company is a good business, we tend to start from a place of growth. We want to find emerging growth companies with attractive and durable growth drivers.
Durable growth characteristics: A large addressable market, secular tailwinds, durable competitive advantages, and a high rate of growth with operational leverage.
Strong businesses: High barriers to entry, quality management, durable competitive advantages, strong market share, high and sustainable margins.
High conviction: We require high conviction to purchase a security based upon our fundamental analysis of a business’s long-term prospects.