We depart from the crowd by emphasizing the change in the rate of growth (acceleration). This draws us to companies where business is good and getting better.
From among the companies showing improvement, we focus on those the market is rewarding, which is reflected through price momentum, the only real-time gauge of investor sentiment.
This convergence of fundamental and behavioral drivers gives us the confidence to hold concentrated portfolios of our very best ideas.
Most equity managers define success as simply having higher returns than a benchmark or the median manager in their peer group. To us, these seem like pretty low hurdles. We set more ambitious goals, because simply “beating the benchmark” is no longer good enough.