Strategic Partner Managed Accounts

Strategies We Believe You Can Utilize With Confidence

SAWGRASS SMALL CAP QUALITY GROWTH STRATEGY


This strategy seeks to outperform the Russell 2000 Growth Index over full market cycles with less volatility by participating in the upside and outperforming on the downside.


Sawgrass Asset Management LLC

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Sawgrass is a boutique, 100% employee-owned firm founded in 1998. Sawgrass believes opportunities can be found by extracting value from enduring inefficiencies caused by investor behavior. The investment team employs a quality-driven process that seeks to provide strong risk-adjusted returns versus its peers and long-term outperformance of the benchmark driven by solid upside participation and downside protection.


Investment Objective & Principal Strategy

The Sawgrass Small Cap Quality Growth Strategy seeks to provide long-term outperformance with less risk.

Sawgrass’s investment philosophy seeks to capture the growth potential of the market with a risk-conscious approach that takes advantage of the long-term compounding benefits provided by downside protection. Sawgrass focuses on companies that exhibit consistent/stable earnings growth, low price volatility, and attractive valuations.


Investment Process

Sawgrass Small Cap Quality Growth

Sawgrass’ conservative, repeatable investment process utilizes both quantitative and qualitative inputs to select a portfolio of 70-90 best ideas from the initial universe of approximately 2,000 securities.

Quantitative ranking is sector-specific and based on 26 factors including, but not limited to:

  • favorable business valuation
  • low price volatility
  • attractive equity valuation
  • stability of sales, earnings and margins
  • high profitability
  • earnings growth
  • Consistent momentum

Rigorous fundamental research seeks to determine the sustainability of the company’s growth by analyzing price/volume action, exploring management’s story, and dissecting Wall Street analyst views and estimates, among other analysis.

Sawgrass is very deliberate in the risk it takes focusing on portfolio weights by factors, industry, and beta, along with stock specific risks and tracking error versus the benchmark.

The final portfolio is typically comprised of 70-90 stocks, +/- 10% benchmark sector weights, +/- 5% benchmark industry exposure with maximum positions of 5%.

Many factors influence sell decisions including but not limited to a deterioration in the quantitative ranking, significant change to its fundamental factors, realignment of portfolio risk profile, a “better opportunity” is discovered and/or the market cap swells into the mid-cap range.

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Portfolio Facts
Advisor: Sawgrass Asset Management LLC
Strategy Inception:   4/30/2010
Benchmark:   Russell 2000® Growth Index
Objective:   Outperform the benchmark with less volatility
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Each account will be managed on an individual basis and will have variations. Investment returns and principal value will fluctuate and there can be no assurance that the strategy’s objective will be achieved. Refer to Sawgrass Asset Management’s Form ADV and strategy fact card for full details regarding the strategy, objectives, fees, risks and additional details about the advisor and strategy. The results and portfolios for individual portfolios may vary.

AAM acts as a third-party marketing to the Manager and does not act as an investment advisor to the strategy referenced above. 

The Russell 2000® Growth Index measures the performance of the small cap growth segment of the US equity universe. It includes those Russell 2000® companies with higher price-to-book ratios and higher expected growth values. The Russell 2000® Index represents includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership. The Russell 2000 is constructed to provide a comprehensive and unbiased small-cap barometer and is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set.

Principal Risks: The Sawgrass Small Cap Quality Growth Strategy is designed for long-term investors who are willing to accept short-term market price fluctuations. Principal risks of investing in this strategy include stock market risk, management risk, recent market events risk, and small cap company risk. An investment in common stocks should be made with an understanding of the various risks of owning common stock, such as an economic recession and the possible deterioration of either the financial condition of the issuers of the equity securities or the general condition of the stock market. Growth stocks are typically more volatile than value stocks. Investing in small and medium-capitalization companies involves greater risk and the possibility of greater price volatility than investing in larger-capitalization and more established companies. All equity investments inherently have aspects of risk associated with them.

CRN: 2024-0924-12009 R