Investment Strategies > Mid Cap Growth

Mid Cap Growth

A research-driven strategy that seeks growth companies with identifiable catalysts for appreciation

Research-driven process emphasizing qualitative, fundamental and valuation analysis that, while mindful of the current macro environment, focuses on bottom-up stock selection to drive alpha
Focus on identifying underappreciated catalysts in companies with compelling fundamentals and characteristics that we believe better position them to capitalize on new opportunities and deliver compelling results
Consistent approach for the last decade with research efforts driven by three seasoned investment team members and complemented by Neuberger Berman's centralized Global Equity Research Department.

Chad Bruso, CFA

Senior Portfolio Manager

Trevor Moreno, CFA

Senior Portfolio Manager

Jennifer Blachford

Associate Portfolio Manager

Overview

Investment Philosophy

A commitment to quality and long-term growth: We believe that earnings are the primary long-term driver of stock price appreciation and that fundamentals matter over the long-term

Investment Process

Active approach seeking companies with compelling and underappreciated catalysts that also offer higher qualitative and fundamental characteristics around which to develop a non-consensus buy-thesis

Positive and predictable unit growth
Ability to effectively leverage top-line growth through the P&L to deliver bottom-line expanding cash flow and earnings growth
Healthy balance sheet with low debt, improving margins and expanding ROE
Credible management with a clear mission and an operating strategy aligned with the interests of shareholders

Portfolio Construction

Market Capitalization

Initiate between $2 and $18 billion with a new idea “sweet spot” between $2 to $5 billion
Willingness to dip down below $2 billion for a high conviction name and also let winners run to a max of $30 billion

Position Parameters

Portfolio of typically around 100 names
Primarily focused on U.S. based companies, but can utilize up to a max of 20% ADRs and direct foreign investment for Non-US exposure
Portfolio Turnover typically between 40 – 75%

Sell Discipline

Act efficiently and dispassionately to address material negative triggers, while attempting to avoid knee-jerk reactions to short-term events, headwinds or anomalies

Risk Management

Continuous approach to monitoring risk, with our diversified approach to portfolio construction and sell discipline geared to temper volatility
Security selection is the primary driver of alpha and we expect that 90% of our “risk dollars” will be spent at that level