SEPARATELY MANAGED ACCOUNTS
Growth, Momentum, & Profitability
Open-mindedness helps us uncover opportunities. Diligence helps inform risk-aware growth strategies.
Strategy Overview
The Growth, Momentum, & Profitability Composite is an actively managed concentrated portfolio of predominantly large market capitalization US companies exhibiting significant monopoly market position characteristics and representing at least 7 of the 11 GICS sectors the portfolio manager deems to be most capital efficient with a combined focus on revenue growth, cash flow growth, balance sheet strength, and momentum. The S&P 500 is the composite benchmark.
The portfolio’s central view is that the next phase of equity-market leadership will be driven by companies that either own scarce infrastructure, operate dominant digital or enterprise platforms, or provide mission-critical products and services to unavoidable secular demand curves.
Designed to Own What We Believe Compounds
The strategy is not designed to own the market.
It is designed to own the businesses we believe are most likely to compound faster than the market.
What We Look For
We focus on companies exhibiting the following:
- Momentum confirmation
- Durable revenue growth
- High or improving margins
- Strong balance sheets
- Monopoly or oligopoly characteristics
- Pricing power
- Secular demand tailwinds
Risk Framework
The portfolio is aggressive, but it is not a single-factor conviction.
Risk mitigation comes from owning different layers of the same secular trends and pairing those with unrelated or less-correlated profit pools.
Mitigating Structure
Hyperscaler ownership may benefit from lower capex intensity.
Mitigating Structure
Exposure spans multiple layers of the chip value chain rather than a single semiconductor profit pool.
Mitigating Structure
The portfolio owns both infrastructure suppliers and the platforms that purchase and monetize that infrastructure.
Mitigating Structure
Non-semiconductor profit pools reduce reliance on any single geography or manufacturing node.
Mitigating Structure
Power exposure is diversified across generation, equipment, grid services, and infrastructure buildout.
Mitigating Structure
Higher-multiple positions are balanced by cash-generative platforms, health care, payments, and infrastructure businesses.
Emphasis on margins, pricing power, and balance-sheet quality helps offset long-duration equity risk.
Mitigating Structure
Global supply-chain exposure is paired with U.S.-centric software, infrastructure, health-care, and payments earnings streams.
Mitigating Structure
Ownership of both vendors and end-market platforms reduces dependence on one side of the AI spending cycle.
Mitigating Structure
Concentration is thematic rather than singular, spanning technology, power, health care, payments, logistics, and public safety.
Individual-Security Rebalancing
These risks are intentional, but not static.
Unlike legacy managers who often rebalance at set intervals, we manage risk at the individual-security level, adjusting exposure whenever valuation, momentum, fundamentals, or thesis quality warrant action.
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