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US Equity Growth
The US is a wonderfully inefficient market. It’s also the global capital for growth firms.
We seek exceptional companies for long-term, concentrated growth. Diversification dilutes the best opportunities. Just 90 companies generated half of the US stock market’s $35tn in wealth creation over 90 years.
The downside is limited to the value invested, but the upside is open-ended.
We seek to harness the power of the outliers
We are in a period of unprecedented change and innovation. A small set of exceptional companies in the US is driving global change. This makes it an extremely exciting time to invest in high-growth US businesses.
US Equity Growth: our philosophy
Investment manager Tom Slater introduces US Equity Growth, reflecting on the exciting opportunities ahead.
Owning the exceptional for a long, long time
Our objective is to deliver more than 2 per cent above the market, either the Russell 1000 Growth Index or broader S&P 500 per anum, over rolling five-year periods, by investing in a concentrated portfolio of transformational growth companies.
We believe this to be a reasonable estimate of the amount by which we can outperform the market in the long term, considering the opportunity set and the unique cultures of the US companies we invest in.
We focus on a small number of companies that can drive returns over the next decade. This requires bravery and imagination. Obsessing over upside and unmatched patience is our edge.
Transformational innovation and disruption
We are investing in the future and aim to be on the right side of innovative disruption. The index, on the other hand, is backwards looking. That’s why our overlap with the market is low (typically less than 15 per cent).
The portfolio gives exposure to important structural changes in society that transcend short-term cycles, meaning it behaves differently from the index.
Innovation is at the heart of what we do. We seek out companies that are disrupting industries, creating new markets and changing the world for the better.
The opportunity to invest in truly innovative, disruptive companies is greater today than ever before, and the long-term growth potential of these companies is huge.
Meet the managers
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