Capital at risk
High growth
When a company has the potential to grow its revenues rapidly, outpacing the broader economy over a sustained period, we call that high growth.
What are high growth’s characteristics?
High-growth companies often drive technological change or disrupt the status quo. They may need external capital or reinvest their free cash flow to pursue future growth. They rarely pay significant dividends, and their share prices can be volatile. Many fall far short of their potential. But those that succeed can reward investors with high multiples of their initial investment. At the portfolio level, the objective is that the successful stocks much more than offset those that don’t work out.
How do we invest in high growth?
We seek ideas that can be disruptive, displacing incumbents and benefiting from profound changes in the use of goods and services over the long term.
Our high-growth portfolios typically range from 25 to 50 stocks. They may have significant amounts invested in our strongest conviction holdings as we seek to maximise the big winners’ impact. Turnover is low at typically around 15 per cent per annum.
High-growth strategies
All our investment capabilities
Core growth
Large, diverse portfolios of growth-focused holdings built with benchmarks and reduced volatility in mind.
Equity and multi-asset income
Seeking both dependable income and long-term capital growth.
Fixed income
Targeting company and government bonds with a focus on long-term outcomes.
Flexible growth
Portfolios containing a mix of firms focused on disruption, steady compounding and timely capital allocation.
High growth
Concentrated portfolios of fast-growth companies, typically holding between 25 and 50 stocks.