US Small Mid Cap Growth Equity Investment Strategies

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 high-quality companies, especially those with products or services viewed as leaders in their market niches. Through our fundamental research and thematic insights, we seek to identify companies with attractive growth characteristics which can result in a sustainable growth trajectory. The strategy emphasizes companies with a notable business advantage, competitive or unique intellectual property, solid cash flows, durable balance sheets and high-quality management. Our approach emphasizes a long-term view to enable fundamental and thematic tailwinds to develop and drive stronger growth.

Our analytical insights are driven by our deep expertise, which we believe provides a unique advantage to our strategy. Our team of seasoned investment professionals have accumulated a breadth of expertise and industry experience over multiple business cycles, and each has a minimum of 10 years of investment experience. This domain expertise is the foundation of our thematic work, as well as differentiated company and industry insights.

We believe the following features differentiate our investment approach:
: Investment Team Expertise: The team’s depth and experience stand out in our space. Our seasoned professionals have extensive domain expertise, with many covering their respective sector/industry for more than 10 years and in some cases over 20 years. This drives our bottom-up fundamental research, enabling the team to understand where there is real innovation and disruption and identify both structural headwinds and tailwinds.

Thematic Insights: The utilization of global investment themes has been part of the investment process for over 15 years. We believe this framework provides a unique market perspective and highlights potential opportunities that peers may overlook.

Sustainable Growth: Our depth of fundamental research and use of thematic insights enables us to focus on sustainable growth opportunities over the next two to three years in contrast to the next two or three quarters. We focus on stock selection that relies on the accurate identification of a company’s long-term sustainable growth opportunity, which is critical to long-term price appreciation.

Emphasis on Risk Assessment: Our disciplined investment process includes an array of different quantitative and qualitative factors including valuation, style and factor exposure, and rigorous investment thesis and price target adherence. This provides the team with a deep understanding of portfolio holdings which we believe should help them to capture relatively more of the potential upside and minimize downside in the portfolio.

Strategy Profile

Objective: The strategy seeks to identify small-cap and mid-cap growth companies where we have a meaningfully different view of their potential success over the next two to three years. As a result, we focus on companies with long-term sustainable growth rates that we believe are not currently appreciated by the market.
Benchmark: Russell 2500™ Growth Index

The Russell 2500™ 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: April 1, 2003

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.

Want to find out more?

Karen Miki Behr

Portfolio manager

John Porter III

Chief investment officer, head of equity

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.

US Small Mid Cap Growth Equity