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Mid Cap Growth

To view the product profile in PDF format please click here:  Mid Cap. Growth Profile 

Philosophy

Invests in high quality, sustainable growth stocks within the mid cap sector ($500 million - $5 billion). Using our bottoms up research analysis, we identify those companies whose fundamental prospects will lead to sustained revenue and earnings growth. An emphasis is placed on the ability to generate free cash flow and to use it for the benefit of shareholders. Seasoned management, market dominance and proprietary technology are qualities that Congress looks for in potential investments.

Investment Process

Our selection process begins with all listed & OTC securities whose market capitalization is between $500 million - $5 billion. Fundamental analysis is done to select companies who can deliver consistent, above average earnings growth. Among the factors used to identify these consistent growers are the following: strong financials, industry domination, shareholder-oriented management and positive cash flow generation. A committee of investment professionals, all of whom serve on our Investment Policy Committee, selects the securities approved for purchase. The committee enforces Risk/reward characteristics and diversification guidelines.

Sell Discipline

Securities are sold when:

The fundamental deterioration of the security takes place.

Four or more quarters of disappointing financial results relative to time of purchase.

Upon comparative analysis, a new security is judged significantly more attractive while maintaining portfolio diversification.

Significant over-achievement which results in the stock becoming too dominant (reduction vs. outright sale).

Structure

Each account is separately managed. Portfolios consist of 45-65 securities, diversified across industry sectors. As much as 20% of a portfolio could be invested in securities which exceed the $5 billion limit on market capitalization due to price appreciation.