US Institutional US Large Cap Growth Equity

This strategy is offered by Newton Investment Management North America LLC (‘NIMNA’) in the United States. NIMNA is part of the Newton Investment Management Group.

Strategy Overview

We focus on companies with solid fundamentals poised to benefit from thematic tailwinds and specific growth catalysts. The US Large Cap Growth Equity strategy has no single definition of growth. We believe maintaining exposure to the broad growth-style category supports outperformance over most market environments. At the industry level, growth is defined by specific industry growth drivers. The key to growth in each sector/industry can be different. Our career analysts are industry experts responsible for identifying the key aspects of growth within their respective industries. The strategy seeks to invest in companies with strong or accelerating growth rates across revenue, earnings, free cash flow and market share. We look to exploit disparities between a company’s stock price and potential growth opportunities for a stock. Other areas that may be underappreciated include:

  • Brand strength
  • Cyclical and secular trends
  • Product development/innovation
  • Supply/demand cycle
  • Capital allocation
  • End-market health

We believe successful growth investing is best achieved through a process that optimizes information, ensures freedom for decision-making, and requires accountability within a framework of oversight and risk management. We believe positive returns can be generated by identifying companies most leveraged to robust growth drivers. In our view, large sector overweights and underweights can lead to inconsistent returns while increasing risk and tracking error. Hallmarks of our approach include:

  • Diversified Approach to Growth Investing: We do not apply a single definition of growth at the portfolio level; rather analysts define growth at the industry level. We believe this enables the most promising growth opportunities driven by the relevant metrics within each area of coverage.
  • Capital Distribution: We distribute capital across our team of analysts to ensure diversification and minimize allocation effect from capital concentration.
  • Stock Selection Drives Results: Career analysts drive stock selection, resulting in a high-conviction portfolio.
  • Clear Accountability: Portfolio managers and analysts understand their specific responsibilities.
  • Risk Management: We manage risk at the portfolio level, which includes factor analysis and stock-specific risk analysis.

Investment Team

Our investment team of research analysts and portfolio managers work together across regions and sectors, helping to ensure that our investment process is highly flexible.

  • Karen Miki Behr
    Karen Miki Behr

    Portfolio manager, Global Opportunities team

  • John R Porter III
    John R Porter III

    Chief investment officer, head of equity

Strategy Profile

Objective

The US Large Cap Growth Equity strategy seeks to generate excess return relative to the Russell 1000® Growth Index over a full market cycle. The strategy seeks to outperform through security selection, utilizing a disciplined fundamental research approach within the framework of risk control that optimizes idiosyncratic (or stock-specific) risk.

Benchmark

Russell 1000® Growth Index

The Russell 1000® Growth Index performance benchmark is used as a comparator for this strategy. Information about the indices shown here is provided to allow for comparison of the performance of the strategy to that of certain well-known and widely recognized indices. There is no representation that such index is an appropriate benchmark for such comparison.

Strategy inception

July 1, 2005

Insights

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Past performance is not a guide to future performance. Your capital may be at risk. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested.