Small Cap Growth
Objective: To outperform the Russell 2000 Growth benchmark by 150 to 200 bps annualized, over a normal market cycle, gross of fees.
Our Small Cap Growth strategy (SCG) is focused on investing in quality small cap growth companies with proven track records, strong financial characteristics, and above-average growth prospects at attractive valuations. We believe this quality-centric strategy will lead to strong relative returns over the long run.
Bridge City's investment process provides a disciplined framework to guide investment decisions. It helps us identify high-quality small cap growth companies by measuring and assigning numerical values to each company's qualitative characteristics, growth & profitability metrics, and financial strength. Valuation is assessed using internally developed earnings projections. Resulting scores help avoid story stocks with flawed fundamentals and gauge a company's relative attractiveness against its peers to identify the highest quality companies trading at attractive valuations.
Our SCG strategy is long only. Portfolio construction aims to isolate performance to stock selection by being fully invested, diversified, and targets neutral sector allocation, as defined below.
Performance
Strategy
Benchmark: Russell 2000 Growth Index
Inception: July 1, 2009
Vehicles:
Separate accounts
M3Sixty Small Cap Growth Fund (MCSCX). Visit M3Sixty Funds to learn more.
Portfolio Statistics
Portfolio Construction
Fully Invested: <5% Cash
Diversified: 65-100 stocks
Position size: approximately 0.5% to ≤ 3.0%
Market caps bracketing the benchmark
Target Sector Neutral: The greater of:
+/- 20% of the weight of the Russell 2001 Growth Index defined sectors, or
+/- 3 absolute percentage points from the defined sector weights within the index.
Top 10 Holdings
Top 10 Holdings
Top ten positions represent approximately 20% of portfolio