Mid Cap
Growth

Research intensive approach, looking for companies with strong projected earnings growth

Strategy Objective

Outperform Russell Midcap® Growth Index and peer group over the intermediate/long term, with risk profile similar to that of the benchmark

Approach

The team uses a research-intensive approach based on internally generated fundamental research and looks for businesses with above average EPS growth that generally have the following characteristics:

  • Sustainable and/or improving earnings growth over the investment horizon
  • Strong business fundamentals
  • Stable and enduring franchise value

We seek to own these “high quality” businesses at attractive valuations. In our opinion, the market often under-appreciates the performance of these steady growth companies.

Differentiating Characteristics

  • Highly experienced and deep team
  • Core product diversified by sector/industry
  • Fundamental research based
  • Focus on business evaluation
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Philosophy

We believe that active management through bottom-up fundamental research can add significant value in uncovering mid-size companies that have the potential to generate above average earnings growth. We seek to invest in companies with sustainable and/or improving earnings growth over the investment horizon, strong business fundamentals, and stable and enduring franchise value. A key criterion is to find those companies that are at a crossroads between rapid, early-stage growth and a more mature, seasoned level of performance. We seek to own these “high quality” businesses at attractive valuations. In our opinion, the market often under-appreciates the performance of these steady growth companies. The benchmark is the Russell Midcap® Growth Index.

Key Characteristics

Benchmark: Russell Midcap® Growth
Number of Holdings: Typically 80 – 90
Maximum Position Size: 4%
Turnover: 30 – 50% under normal market conditions
Active Share: Approximately 75%
Cash: < 5%

 
Capital at Risk: Please remember that there are inherent risks involved with investing in the markets, and your investments may be worth more or less than your initial investment upon redemption. There is no guarantee that the investment managers’ objectives will be achieved. Professional money management is not suitable for all investors.

Investment Team

Our Small/Mid Cap team includes four portfolio managers and five research professionals.

The investment universe is divided by sectors and/or industries, with individual team members having responsibility within their areas of expertise.

Portfolio managers and analysts continually discuss the merits and risks of each security, reviewing the fundamental outlook and stock valuation. This interactive process leverages the knowledge and skill of the entire investment team.

 

Meet the Team

 
This website is intended for Institutional and Professional Investors only.

Please remember that there are inherent risks involved with investing in the markets, and your investments may be worth more or less than your initial investment upon redemption. There is no guarantee that the investment managers’ objectives will be achieved. Professional money management is not suitable for all investors.

Additional considerations:
This web site is not intended as an offer or solicitation with respect to the purchase or sale of any security or other financial instrument or any investment management services.The does not constitute investment advice and should not be used as the basis for any investment decision. There is no assurance that the strategy objectives as discussed will be met. Further, there is no assurance that any strategies, methods, sectors, or any investment programs herein were or will prove to be profitable, or that any investment recommendations or decisions we make in the future will be profitable for any investor or client.These materials do not purport to provide any legal, tax or accounting advice.

The risks associated with investing include but are not limited to: derivative securities, which may carry market, credit, and liquidity risks; short sales, which involve costs and the risk of potentially unlimited losses; leveraging, which may magnify losses; high yield (“junk”) bonds, which are subject to greater market risks; small/mid cap stocks which may be subject to more erratic market movements than large cap stocks; foreign securities, which are subject to currency fluctuation and political uncertainty; real estate, which poses certain risks related to overall and specific economic conditions as well as risks related to individual property, credit and interest-rate fluctuations; and mortgage-backed securities, which are subject to prepayment and extension risks.

Thematic and concentrated portfolios may not be suitable for all investors. Such portfolios are non-diversified, so a loss resulting from a particular security will have greater impact on the portfolio’s return. Fixed income investments are subject to interest rate risk, and their value will decline as interest rates rise.

Your investment objectives, risk tolerance, and liquidity needs must be reviewed before suitable programs can be recommended. Asset allocation and diversification strategies do not assure a profit or protect against loss in declining markets. Investors should consult with their attorney, accountant, and/or tax professional for advice concerning their particular situation.

In the UK: The information contained herein is provided by PGIM, Inc., the principal asset management business of Prudential Financial, Inc. (PFI), Both Jennison, and PGIM are U.S. SEC registered investment advisers. Jennison is a wholly-owned subsidiary of PGIM, which is the principal asset management business of PFI, a company incorporated and with its principal place of business in the United States. PFI is not affiliated in any manner with Prudential plc, a company incorporated in the United Kingdom.

PGIM Limited registered office: Grand Buildings, 1-3 Strand, Trafalgar Square, London, WC2N 5HR is authorised and regulated by the Financial Conduct Authority of the United Kingdom (registration number 193418) and duly passported in various jurisdictions in the EEA. These materials are issued to persons who are professional clients or eligible counterparties for the purposes of the Financial Conduct Authority’s Conduct of Business Sourcebook.

In certain countries in Asia, information is presented by PGIM Singapore, a Singapore investment manager registered with and licensed by the Monetary Authority of Singapore.

In Japan, information is presented by PIMJ, registered investment adviser with the Japanese Financial Services Agency.

In South Korea, information is presented by PGIM, Inc., which is licensed to provide discretionary investment management services directly to South Korean investors.

In Hong Kong, information is presented by representatives of PGIM (Hong Kong) Limited, a regulated entity with the Securities and Futures Commission in Hong Kong to professional investors as defined in Part 1 of Schedule 1 of the Securities and Futures Ordinance.