Innovation Equity Strategy
The strategy pursues long-term capital appreciation by investing in growth companies that are innovative on the “right side of change.”
Competitive advantages
Right side of change
Identifies companies on the “right side of change” using a non-formulaic approach to idea generation
Fundamental edge
Develops bottom-up fundamental “edge” through all-cap “surround the company” research
Risk/return assessment
Assesses each holding for attractive risk and return to avoid excessive valuations
Portfolio construction
Constructs portfolios to balance risk across core holdings, developing situations, and valuation opportunities
Long-term performance starts with identifying companies on the “right side of change.”
The team seeks a style-pure dedication to growth, targeting consistency of returns and focusing on fundamental, bottom-up, all-cap research to identify businesses with sustainable growth.
Key risks
Market risk: Security markets are volatile and may decline significantly in response to adverse issuer, regulatory, political, or economic developments with different sectors of the market and different security types reacting differently to such developments.
Equity securities risk: Equity securities fluctuate in value and price in response to factors specific to the issuer of the security, such as management performance, financial condition, and market demand for the issuer's products or services, as well as factors unrelated to the fundamental condition of the issuer, including general market, economic, and political conditions.
Small-cap securities risk: If a strategy invests in the securities of smaller-capitalization companies, these securities tend to be more volatile and less liquid than those of larger companies.
Foreign securities risk: If a strategy invests in the securities of non-U.S. issuers, these investments may be subject to lower liquidity, greater price volatility, and risks related to adverse political, regulatory, market, or economic developments and may be affected by changes in foreign currency exchange rates.
Investors should know that this strategy deployed may be subject to additional investment risks. For important information about the investment manager, please refer to Form ADV Part 2.
