At Silvant, we believe growth is a condition, not a category ― meaning that any company, regardless of sector, may present conditions for growth at some point in its lifecycle. This philosophy differentiates our approach to research, and creates the potential to add alpha in varied market conditions.
We seek to invest in companies from every corner of the economy that exhibit the potential to grow faster than their peers and offer the opportunity to exceed investor expectations.
Comprehensive Search for Growth
Our investment team finds investment opportunities in expected and unexpected places, including many companies not traditionally found in the growth category. We seek to identify innovative companies with:
- Above-average sustainable earnings growth
- Disruptive products or services with the ability to change the business landscape
- Positive secular and cyclical economic trends that create new opportunities for business
This results in all types of companies exhibiting growth, whether cyclical or secular in nature, to be included in our investable universe.
A Differentiated Process
The Silvant investment team approaches decision-making collaboratively, starting with our bottom-up approach to stock selection. Working together, members of the team are responsible for selecting stocks, conducting fundamental analysis, portfolio construction, and risk management relative to the benchmark.
Any company can grow. Our team roots out the strongest prospects for growth, including often unexpected places.
- We seek to identify key metrics for growth, positive cyclical and secular trends within specific company fundamental data, focusing on change and investor expectations.
- Examples: a new product cycle, a change in cost structure, an expedited date for a drug filing, or a price increase.
- Key metrics are a company’s most important business fundamentals and have the potential to drive the stock price.
We analyze, prioritize, and track key metrics, assessing investor expectations along the way.
- Our thorough, bottom-up research includes assessing the viability of continued improvement in each company’s specific business drivers.
- Our goal is to determine which key metrics are changing by the largest magnitude and which are most likely to exceed investor expectations.
- As a company’s key metrics near positive inflection, investor expectations can change and the opportunity for increased revenue and earnings can grow.
We seek to drive outperformance in client portfolios primarily through stock selection.
- We construct client portfolios with stocks from all major industries, putting our team’s deep sector expertise to full use.
- We buy and sell companies in response to changes in key metrics, weighting portfolio positions based on expected return and volatility.
- We trim and add to positions when the risk/return trade-off changes.