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The SMID Cap Growth strategy seeks superior capital appreciation through careful selection from a universe of high-quality, small- and mid-capitalization growth companies. We generally invest in profitable companies utilizing a bottom-up fundamental approach. We are a conservative growth investor and invest in companies for long-term capital appreciation, which results in below-average turnover.


Strategy overview

  • Belief in a strong correlation between a company's earnings growth and its stock price appreciation
  • Focus on companies that exhibit consistent growth characteristics, a solid balance sheet and a strong management team
  • Belief that companies with steady revenue and earnings growth contribute to low portfolio volatility and long term out performance

Approach

Investment process

  • High conviction, bottom-up fundamental approach built around a long investment horizon
  • Uniquely qualified - three team members who are CPAs in addition to being CFA charterholders, driving deeper analyses of company accounting issues to distinguish high quality earnings from unsustainable earnings
  • Low volatility and downside protection through a bottom-up fundamental analysis targeting profitable companies generating more consistent financial results

Portfolio construction

  • Aims to outperform the Russell 2500 Growth Index over the long-term
  • Fully invested in equities; no market timing
  • Risk controls
    • Maximum exposure to any one company will be 2.5% at cost and 4.0% at market
    • Well diversified portfolio of 70-90 names
    • Broad industry and sector exposure - no large sector bets
  • Low portfolio turnover: 15-20% annual average
  • Low composite dispersion across portfolios*

*Subject to client specific restrictions

Additional information

Inception
October 2008
Primary benchmark
Russell 2500 Growth Index
Vehicle
Segregated Fund, U.S. Mutual Fund

Related documents

Portfolio managers

Investment team

​RBC U.S. Growth Equity team

Focus on high-quality U.S. small- and mid-cap growth companies

Connect with our team to learn more

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