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Strategy Highlight
Large Cap Growth Strategy
Objective of the strategy:
The strategy seeks to provide long-term capital appreciation by investing in 60-80 stocks of large U.S. companies that
have strong business fundamentals and reasonable valuations.
What are the principles that have enabled the strategy to be successful?
Large Cap Growth
Strategy
Positive fundamental
momentum
Minimize
unintended risks
Team-based management
QUANTITATIVE RESEARCH
Weekly proprietary quantitative
screening of over 3,000 companies
based on four categories:
• Earnings trends and quality
• Valuation
• Capital deployment
• Market behavior
FUNDAMENTAL RESEARCH
Identify stocks with attractive
fundamental characteristics along
three measures:
• Competitive assessment
• Management assessment
• Valuation
BUILD PORTFOLIO
Construct portfolio of 60 to 80
stocks diversified across sectors
and industries. Reduce unintended
exposures relative to the benchmark
through:
• Weighting decisions
• Risk management techniques
MONITOR PORTFOLIO
Monitor stocks according to
investment thesis. Monitor
overall portfolio relative to
tracking error targets
Positive fundamental momentum – our team focuses on stocks that have positive
fundamental trends, including earnings and revenue growth, improving cash flows
and margins, and increasing return on invested capital.
Minimize unintended risks – we seek to generate performance (alpha) through
bottom-up stock selection, minimizing the potential impact of unintended style bias,
sector concentrations, or macroeconomic risks relative to the primary benchmark.
Team-based management – the lead portfolio managers are supported by a team
of sector portfolio managers with in-depth experience in their respective sectors
who help oversee all elements of managing the portfolio.
How is the investment process implemented?
Quantitative research – identify an advantaged pool of stocks through a screen
of each company’s financial history relative to the appropriate sector and to the
overall universe.
Fundamental research – the highest ranking stocks from the initial screening are
assessed for the sustainability of company-specific business fundamentals such
as product cycles, market penetration, and management depth and transparency.
Forward-looking metrics including discounted cash flow and forward earnings
estimates are analyzed. For each security the team develops a short- and longterm investment thesis, establishes performance benchmarks, and debates the
security’s appropriateness within the overall portfolio.
Build portfolio – build a style-consistent portfolio based on fundamental, bottomup stock selection. Measure and manage risk exposure at the security, sector,
and portfolio levels in an effort to minimize unintended risks relative to the
primary index.
Monitor holdings and overall portfolio – monitor stocks relative to their
investment thesis. Ensure the portfolio is within the predetermined tracking
error range and in alignment with performance (alpha) target. Continue to
monitor new stocks and reevaluate existing ones. Positions within the portfolio are
typically trimmed if relative valuation deteriorates, exited if material fundamental
change occurs, or replaced if a better investment opportunity is identified.
Past performance is no guarantee of future results. There is no guarantee this strategy will work for you.
www.silvantcapital.com
Strategy Highlight
Large Cap Growth Strategy
Investment Considerations
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments
in high-grade fixed income securities. The net asset value per share of this fund will fluctuate as the value of the
securities in the portfolio changes.
©2009 Silvant Capital Management LLC. Silvant Capital Management is a registered investment adviser with the SEC, a member of
the RidgeWorth Capital Management, Inc. network of investment firms, and a service mark of SunTrust Banks, Inc. All information
contained herein is believed to be correct but accuracy cannot be guaranteed. Past returns are not indicative of future results.
Comments and general market related projections were based on information available at the time of writing, are for informational
purposes only, are subject to change without notice, and may not be relied upon for individual investing purposes. Silvant Capital
Management and its employees do not provide tax or legal advice.
www.silvantcapital.com
SVSH-LCG-0909