Portfolio Construction

Our portfolio construction is rooted in a blend of core growth, hybrid, and earnings catalyst stocks, in an effort to provide balance across market environments. We apply thematic concentration to maintain high-conviction positions while preserving diversification.

Guided by our core belief that Wall Street underestimates both the magnitude and duration of change, we design portfolios to capture the alpha generated by these overlooked inflection points.

Core Growth Stocks

We seek to identify high quality, established, well-managed companies with strong business franchises; companies that have a competitive advantage in growing markets; and companies that exhibit sustainable, above average revenue and earnings growth rates. The goal of core positions is to lend stability to the portfolio because of their earnings consistency. Investors tend to reward companies exhibiting long-term sustainable growth characteristics with premium valuations.

Earnings Catalyst Stocks

We seek to identify companies with a significant positive business catalyst that translates into accelerated earnings growth. The catalyst for change may come from within the company or it could be attributed to an event in the marketplace. Positive changes can typically lead to a period of better-than-expected revenues, and/or earnings revisions and potentially price/earnings expansion.

Hybrid Growth Stocks

Hybrid Growth Stocks have elements of both “Core & Catalyst” stocks.

Details

Our portfolios are thoughtfully constructed to reflect our long-term philosophy and dynamic approach to change-driven growth.

Portfolios typically hold ~40–110 stocks, but this includes many small positions being scaled in or out.
Turnover is typically low (~20–35%), consistent with the firm’s “investors, not traders” mindset.
Core holdings are held for years (often a decade or more). Catalyst holdings have shorter life cycles but are tightly monitored for exit triggers based on a pre-mortem fundamental investment thesis—not price moves.