AGF U.S. Large Cap Growth Equity Strategy

Approach
Fundamental, bottom up.
Cap
Large Cap
Benchmark
S&P 500 Index
Inception Date
June 1957
Resources

Key Reasons to Invest

1

A complement to an existing U.S./Global Equity core portfolio with growth potential.

2

Concentrated exposure to U.S. equities, while focusing on innovation to identify companies that exhibit exceptional product development and corporate leadership.

Overview

Strategy

A bottom-up growth investment style that looks for companies with above-average earnings and revenue growth relative to their historical earnings, the industry or overall market.

Philosophy

The team’s objective is to capture leading growth companies in every investment cycle. Every stock the team holds is a buy each day, or it is sold. The team uses an opportunistic bottom-up approach with front-end quantitative screens to identify high-quality, large-cap U.S. growth companies that can successfully generate sustainable above-average growth for revenues, earnings and cash flow.

Investment Process

Our investment process employs a fundamental, bottom-up and macro-consideration approach. Our universe contains 1,900+ U.S. companies with market capitalizations of US$2 billion and above. First, quantitative screens narrow the investible universe to 350+ stocks. Next, qualitative screens continue to narrow the investible universe to 200+ stocks. A catalyst identification further reduces the universe to 100+ companies, singling out potential purchase candidates.

In order to determine the optimal growth candidates, in-depth analysis and due diligence is performed for each company. This step confirms that these companies exhibit the potential for sustained growth as well as continued innovation in their products and services.

The resulting portfolio consists of 30-50 companies that exhibit strong growth characteristics. The typical range for position weights is 1-8%. There will be representation in at least 8 of the 11 GICS sectors comprising the U.S. equity market, as represented by the S&P 500 Index.

Our team's utilization of a bottom-up investment process results in a high conviction portfolio of 30 -50 stocks that exhibit above-average growth characteristics.

Investment Process

U.S. Investment Universe
  • Market cap of US$2 billion and above 1,900+ stocks
Portfolio
  • Market leaders
  • High conviction
  • Innovation
  • Thematic beneficiaries
  • 30 - 50 names

Investment Team

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