Strategy Inception
1995
Strategy AUM (USD)
$2.8 B
As of 09/30/2023
Average Team Industry Experience
17 Years
As of 12/31/2022
Investing with a well-defined, bottom-up growth philosophy, the team looks for stocks at inflection points where earnings growth and market expectations are rising. We believe that investing in stocks exhibiting accelerating, sustainable growth, driven by inflection in business fundamentals, can result in stock price outperformance.
Seeking Accelerating, Sustainable Growth
We believe the direction of revenues and earnings growth is a more powerful predictor of stock price performance than the absolute level of growth as depicted in the image to the right.
Capitalizing on Market Inefficiencies
We believe the market is slow to recognize positive inflection points and is inefficient in extrapolating current operating trends into future earnings around these inflection points.
Well-defined criteria leads to focused, disciplined, and repeatable stock selection.
We Focus on Four Factors of Stock Selection
Our deep, diverse and dedicated investment team applies a disciplined framework we call ISGV. It seeks to identify investment opportunities through a rigorous, portfolio construction process to help manage risk and aim to achieve consistent returns over time.
Inflection
Is there a change in fundamentals?
What is driving the change?
Is it early in company's growth cycle?
Sustainability
Is the inflection in fundamentals sustainable?
What are the key risks to the durability of growth?
Earnings Gap
Does consensus fully reflect acceleration in fundamentals?
Are out-year consensus estimates beatable?
Valuation/Risk-Reward
Is valuation reasonable given the growth opportunity?
What is downside risk?
We Seek to Achieve Repeatability within our Process
Through a continuous, multi-step process, we monitor investment universe opportunities and risks and put equal emphasis on buy and sell decisions.
Idea Generation
Identify companies exhibiting accelerating growth and improving fundamentals: fundamental information flow, quantitative screens.
Fundamental Analysis
Confirm acceleration is genuine and sustainable.
Integrate material ESG risks and opportunities.
Portfolio Construction
Focus portfolio on best ideas.
Monitor risks controls and guideline.
Portfolio
125-160 stocks
ESG Integration
Evaluating and Integrating ESG Risks and Opportunities
We incorporate material ESG factors into our investment decision-making process potentially affecting long-term financial performance. This is a critical step within the fundamental analysis phase of our ISGV process. Our ESG Research Framework is made up of 3 steps.
Experienced team working in a collaborative environment
Averages 15+ years of industry experience
Portfolio Managers
Firm Start
2005
Industry Start
2005
Firm Start
2014
Industry Start
2005
| Average Industry Experience | 17 Years |
| Assets Under Management | $2.8 B USD As of 09/30/2023 |
| Location | New York, NY |
Cross-Discipline Support
Client Portfolio Managers
Investment Analysts
Global Equity Trading
Sustainable Research Team
Global Analytics
Takeaways
An approach seeking undervalued small cap companies with improving business fundamentals
A shared philosophy and dedicated, collaborative team provides a differentiated investment process
Alpha generation and risk management driven primarily by stock selection
The Russell 2000® Index is a trademark/service mark of the Frank Russell Company. Russell® is trademark of the Frank Russell Company.
Sources: Frank Russell Co., FactSet
Many of American Century's investment strategies incorporate the consideration of environmental, social, and/or governance (ESG) factors into their investment processes in addition to traditional financial analysis. However, when doing so, the portfolio managers may not consider ESG factors with respect to every investment decision and, even when such factors are considered, they may conclude that other attributes of an investment outweigh ESG considerations when making decisions for the portfolio. The consideration of ESG factors may limit the investment opportunities available to a portfolio, and the portfolio may perform differently than those that do not incorporate ESG considerations. ESG data used by the portfolio managers often lacks standardization, consistency, and transparency, and for certain companies such data may not be available, complete, or accurate.
ESG Definitions:
ESG Integrated: An investment strategy that integrates ESG factors aims to make investment decisions through the analysis of ESG factors alongside other financial variables in an effort to deliver superior, long-term, risk-adjusted returns. Therefore, ESG factors may limit the investment opportunities available, and the portfolio may perform differently than those that do not incorporate ESG factors. Portfolio managers have ultimate discretion in how ESG issues may impact a portfolio's holdings, and depending on their analysis, investment decisions may not be affected by ESG factors.
ESG Focused: An investment strategy that focuses on ESG factors seeks to invest, under normal market conditions, in securities that meet certain ESG criteria or standards in an effort to promote sustainable characteristics, in addition to seeking superior, long-term, risk-adjusted returns. This investment focus may limit the investment opportunities available to a portfolio. Therefore, the portfolio may underperform or perform differently than other portfolios that do not have an ESG investment focus. ESG-focused investment strategies include but are not limited to impact, best-in-class, positive screening, exclusionary, and thematic approaches.
This is marketing material. This information is intended to be general in nature and is not personal financial product advice. Any advice contained here is general advice only and has been prepared without considering the investment objectives, financial situation or particular needs of any particular person. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your investment objectives, financial situation and needs. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. American Century nor any of their related parties, their employees or directors, provide any warranty of accuracy or reliability in relation to such information or accept any liability to any person who relies on it.