Objective
The StoneRidge Small-Mid Cap Growth Equity Portfolio seeks to outperform small-mid capitalization benchmarks (typically the Russell 2500 Growth Index) and industry peers over a market cycle (3-5 year time horizon).
Philosophy
StoneRidge believes a blend of fundamental research, quantitative tools and qualitative decisions are required to consistently add value in small-mid capitalization growth equity management.
Process
The equity investment process employed by StoneRidge Investment Partners has consistently relied upon a team of sector specialists performing intensive fundamental research. This bottom up, fundamental investment process is supported by a proprietary, multi-factor screening tool, the purpose of which is to narrow the scope of the investment universe. This quantitative tool also provides an objective analysis of our existing portfolio.
We begin with our proprietary quantitative tool which screens and then ranks the small-mid capitalization investment universe of over 2400 U.S. stocks with market capitalizations between $500 million and $10 billion. In addition, we will consider as a potential investment any stock that is a constituent of the Russell 2500 Growth Index. The goal of our screening tool is to narrow opportunities to a focused list of stocks that possess the characteristics most likely to lead to superior investment performance. Our screening tool is constructed around five broad factors that are critical to stock performance: earnings momentum, valuation, technical, accounting/financial condition and insider activity. Stocks are ranked relative to the entire universe and those companies with the most attractive combination of attributes are then subjected to in-depth fundamental research by our sector specialists.
The most important part of our process is analysis of potential investments by our sector specialists. Team members balance rigorous fundamental research, technical analysis and qualitative judgment as the basis for bottom up stock selection. We strive to maintain the most attractive portfolio by utilizing this dynamic stock selection process and by updating our proprietary screening tool every day. Our process enables us to keep pace with changes in the markets, monitor existing portfolio holdings and identify new investment opportunities.
