Growth and Value in a Single Portfolio
Our Core Equity Investment Strategy

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  • An analysis of financial market history shows there has been an inverse relationship between the relative performance of growth stocks and value stocks. Though long term returns for growth stocks and value stocks have been comparable, over short to intermediate periods of time each of the two groups has relatively outperformed or underperformed the other, sometimes dramatically so.
  • The graph below clearly illustrates the phenomenon of clear and sustained outperformance by either growth or value styles of management..

Growth Managers and Value Managers
vs. Total Equity Database*


  • Given the tendency for growth and value styles to be in or out of favor for multi-year periods, we believe a blended growth and value approach is more likely to achieve the consistency we believe our clients seek than either style as a stand-alone strategy.
  • We believe a broadly diversified blend of large capitalization domestic and foreign domiciled stocks, well selected from both the growth and value sectors and intensively managed within a single portfolio, will produce consistently superior results and reduced volatility relative to either a growth-only or value-only approach.
  • Having a wide range of thoroughly researched choices within both the growth and value sectors also provides the flexibility to identify attractive equities at any point in the inevitable market cycle.
  • For taxable clients, our low turnover approach, averaging less than 20% per annum, supports our effort to manage toward high after-tax returns.
  • Stock returns must compete successfully against bond yields.
  • The performance benchmark for our equity portfolios is the Standard and Poor's 500 Stock Index.

* Represents the annual percentile ranking of the Large Growth Median and Large Value Median vs. the Large Domestic Equity manager universe in the Effron-PSN database. This universe consists of over 1000 equity products.