SMID Cap Growth
Sub-Adviser: Conestoga Capital Advisors
Firm Location: Wayne, Pennsylvania
Assets under Management as of December 31, 2014: $1.7 billion
Founded: 2001
Investment Professionals: 9
Ownership: 100% Employee Owned
Number of Stocks Held: 40 – 60
Benchmark: Russell 2500 Growth Index
Investment Philosophy
Conestoga believes that investors can earn a premium return in small to mid-capitalization growth equities by identifying higher quality companies that are capable of growing through multiple business cycles with strong balance sheets and significant management ownership. They seek to take advantage of the inefficient discovery process for small and mid sizes companies and other investors' focus on near-term earnings.
The key tenets of the Conestoga investment style are:
- Build client portfolios consisting of 40 to 60 higher-quality small/mid capitalization growth companies diversified across economic sectors.
- A long-term investment horizon which results in a low portfolio turnover rate of approximately 20-30%.
- Seek to provide attractive risk and reward characteristics relative to the Russell 2500 Growth Index.
- Stocks are sold or rebalanced from the portfolio when their weighting reaches two times the initial target; fundamentals deteriorate; there is a change in corporate strategy which violates their investment thesis or research uncovers a better opportunity.
- As a risk control measure, stocks are trimmed by one-third when the market capitalization exceeds $15 billion or the position size reaches 6%. Companies are reevaluated when they underperform the benchmark by 25% on a three- or twelve-month basis.
SMID Cap Growth | Large Cap Growth | Large Cap Value
Core Fixed Income | Core Plus Fixed Income
