The Columbia Mid Cap Growth team seeks to invest in companies that deliver superior value to their customers through innovation, operate within a favorable market structure with high barriers to entry, and enjoy structural growth tailwinds driven by mid- to long-term changes in economies and societies.
The investment team seeks to identify strong corporate performers through analysis of business models, financial strength and senior management. The initial universe consists of ~850 securities with market capitalizations primarily between $3 billion and $30 billion. All investment candidates undergo extensive valuation analysis as the team seeks to understand if the market price is below their calculation of intrinsic value. This analysis considers returns on capital, sustainability of those returns and growth in economic profit.
The portfolio is typically comprises 50-70 stocks. Sector weights are generally 0.5x to 2.0x the benchmark weights of the major economic sectors. The maximum position size is 5%, with most holdings typically <3%.
Portfolio Benchmark: Russell MidCap Growth Index
Portfolio parameters are internal guidelines used by the investment team and are subject to change without notice. Formal investment parameters are set forth in the offering documents or investment management agreement.