Stephens Investment Management Group

Decision Process

Decision Process

Our investment process begins with an initial universe of domestic securities. We refine this universe by utilizing a variety of quantitative screens that focus on identifying companies with superior earnings growth potential. Members of our investment team, each with a different sector specialty, then perform a rigorous fundamental analysis, which may include meetings with company management, analysis of corporate financial statements, and the review of Wall Street research. We review many stocks, but only invest in the ones that meet our quantitative criteria and have a clear and identifiable fundamental investment thesis. This thesis may be unique to the investment or may be part of a broader theme within our portfolio.

Our disciplined approach gives us the confidence to make investment decisions based on quantitative realities and fundamental themes, regardless of "conventional wisdom". As bottom-up investors, all companies are analyzed on an individual basis rather than being part of a macro asset allocation process. In the end, we utilize a team based approach to portfolio construction thereby leveraging the information and knowledge base of the whole team. We believe this strategy encourages open debate that helps generate proprietary investment themes while helping to remove emotion from the investing process.

EPS: Earnings per share (EPS) is calculated by taking the total earnings divided by the number of shares outstanding by the price per share.

Return On Equity (ROE) is an indicator of profitability. It is calculated by dividing net income for the past 12 months by common shareholders' equity.
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