AllCap Growth
Description
William Blair serves as sub-advisor to Westwood Trust's AllCap Growth product. The All Cap Growth Portfolio invests primarily in 40-55 stocks of domestic growth companies with sustainable, above-average growth in sales and earnings. The Fund invests in large, medium and small companies in varying proportions.
The investment process relies on thorough, in-depth fundamental research of a company, its competitors, suppliers, and customers. The portfolio team seeks quality companies it believes are well-managed. Key investment considerations include:
- Market leadership;
- Unique products or processes;
- Strong marketing capability;
- Above-average financial returns; and
- Conservative financial and accounting practices.
Risk is controlled on an absolute basis by investing in quality companies, sector/industry diversification, and maximum position limits.
Process
Purchase Discipline
Companies are selected for the portfolio using a disciplined, research-intensive approach. Research is conducted internally by experienced and dedicated analysts as well as the portfolio team. The Durable Business Franchise framework is a proprietary method used to evaluate stocks. This framework consists of an internally developed list of elements used to analyze stocks in three areas:
- The strength of management;
- The sustainability of the business model; and
- The attractiveness of a company’s financials.
The proprietary ranking of these elements is crucial to our process and our delivery of strong and consistent results. This analytical framework permeates our investment philosophy and research discipline.
Portfolio construction decisions are made on an ongoing basis by the portfolio management team. Allocations are made following in-depth discussions regarding relative merits of current portfolio holdings versus each other and potential candidates that may have a more attractive expected return profile. Decisions are made on a collaborative basis, with all team members participating, and each member holding full accountability for each investment.
Sell Discipline
The portfolio team looks to sell securities when:
- Other candidates offer better opportunities for growth;
- Valuations become excessive; or
- Outlook for the company’s fundamentals erodes.
More Information
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