Sierra Investment Partners, Inc. chose Fort Washington Investment Advisors because of its proven investment philosophy and process. The Small Company Equity strategy seeks to outperform the Russell 2000 Index with less volatility over a full market cycle. The strategy only invests in profitable small cap stocks, avoiding unprofitable small cap stocks and reducing the risk levels of investing in small cap stocks. The Small Company Equity team believes that equity investments experience a four-stage investment cycle (Low Expectations, Rising Expectations, High Expectations, Falling Expectations). The research focus and goal is differentiated for each state of the investment cycle. Stock selection is focused on four critical business model factors: revenue growth, profit margins, free cash flow conversion, and capital deployment.
We believe value and growth investing are not mutually exclusive and seek to generate consistent, long-term performance by investing in outstanding businesses that have attractive valuations with growth potential and operating/competitive characteristics that provide downside protection. We invest in business with the fundamentals of growth, but we are not willing to pay a premium for them.
- 70 – 90 positions
- 1% to 2% positions
- Top 10 under 25%
- Sector diversification