loader image

Small Cap Growth Equity

Investment Profile

  • U.S Small Cap Growth Universe
  • Focused portfolio of 30 – 45 securities
  • Expected annual turnover of 25 – 35%
  • Maximum industry weight 25%
  • Maximum security weight 10%
  • Maximum cash position 10%
  • Inception date 12/1/2023
Small Cap Growth Equity Investment Strategy

Investment Objective

The Peloton Small Cap Growth Equity strategy is a high conviction, focused portfolio of small-sized companies with a market capitalization typically less than $5 billion. The primary objective is to provide investors with long-term capital appreciation at or below benchmark risk over a full market cycle, relative to the Russell 2000® Growth Index. The strategy seeks to accomplish this through a portfolio of high quality, well-managed, and fast growing companies with strong balance sheets across most sectors.

Investment Approach

A growth at a reasonable price (GARP) investment approach that blends our proprietary Quality Score assessment and our rigorous and collaborative fundamental analysis, with our forecast and valuation methodology all designed to identify the intersection of quality and growth.

The strategy invests at least 80% of its assets in equity securities issued by U.S. small-capitalization growth companies, as represented in the Russell 2000® Growth Index, that the portfolio management team believes have above-average long-term capital appreciation potential. We also take into account security, sector, and industry diversification as well as both portfolio and client specific investment policies that establish suitability.

Our disciplined, proprietary and research-driven investment process allows us to minimize emotion, focus on the fundamentals, and invest where we identify the best opportunities.

Investment Philosophy

Our Large Cap Growth Equity investment philosophy is based on the following core beliefs:

It’s a market of stocks, not a stock market.

We believe in buying great businesses that will outperform, and that equities are capable of producing higher excess returns than most other asset classes over time.

The market is a forward-looking mechanism.

We believe the markets are generally efficient, continuously pricing in new information and expectations, but that valuations do not always accurately reflect future earnings.

Research matters.

We believe in fundamental research, knowing what we own, and that a high-conviction portfolio of quality companies can provide the best opportunity for superior risk-adjusted returns over time.

Investment Process

Our investment approach blends our proprietary Quality Score assessment and our rigorous and collaborative fundamental analysis, with our forecast and valuation methodology all designed to identify the intersection of quality and growth.

Get Serious About Investing

Get Serious About Investing

Get Serious About Investing