Our Approach
We believe that consistent outperformance can be delivered by integrating systematic stock evaluation, in-depth fundamental research and disciplined risk management. We believe our clients are best served with an investment approach that is transparent and repeatable.
Principles of Our Approach
- Positive Fundamental Momentum — our team focuses on stocks that have positive fundamental trends, including earnings and revenue growth, improving cash flows and margins, and increased 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.
Our Investment Process
| Large Cap Growth | Large Cap Core Growth | Select Large Cap Growth | Small Cap Growth | |
|---|---|---|---|---|
| Initial universe | 1,000 | 500 | 1,000 | 2,000 |
| Securities screened out | 600 (less than $4b market cap) | 100 (less than $3b market cap) | 600 (less than $4b market cap) | 900 (less than $3m volume/day) |
| Stocks with appropriate characteristics | ~ 120 stocks | ~ 120 stocks | ~ 120 stocks | ~ 300 – 400 stocks |
| Portfolio | 60 – 80 stocks | 50 – 60 stocks | 30 – 40 stocks | ~ 125 – 175 stocks |
As of 9/30/09. Data subject to change.
At Silvant, we strive to provide consistent, repeatable outperformance for our clients. To do so we employ a rigorous investment process that has yielded strong results.
- We screen all stocks in our investment universe, identifying those with the strongest "fundamental momentum". We look for companies whose revenue and earnings are growing, cash flow is sustainable, and whose capital deployment and valuations are attractive.
- Our team then evaluates the best positioned companies, seeking to understand all aspects of their businesses. Those firms best positioned to execute on secular and cyclical growth trends and whose prospects look attractive from both a short and long term prospective are added to the portfolios.
- Our growth portfolios are well balanced diversified and constructed so that the majority of the relative outperformance is derived from stock selection. Our risk management process seeks to avoid large sector, style and other unintended biases relative to the indexes. We believe this prudence affords us the opportunity to outperform in most types of market conditions.
- Positions within the portfolio are typically trimmed or exited if material fundamental change to the investment thesis occurs, valuation becomes unreasonable , or a better investment opportunity is identified.
Our clients expect top-tier investment performance and service. We believe our process is well suited to meet those goals.
