Westwood AllCap Growth
Westwood has engaged William Blair as a sub-advisor to the Westwood AllCap Growth strategy. The portfolio invests primarily in 40-55 domestic companies with sustainable, above-average growth in sales and earnings, and a variety of market capitalizations.
The investment process relies on thorough, in-depth fundamental research of a company, its competitors, suppliers, and customers. Key investment considerations include market leadership, unique products or processes, strong marketing capability, above-average financial returns, and conservative financial and accounting practices.
Risk is controlled on an absolute basis by investing in quality companies, sector/industry diversification, and maximum position limits.
Buy discipline
William Blair uses a proprietary method known as The Durable Business Franchise framework to evaluate stocks. This provides for analysis of three areas:
- The strength of management
- The sustainability of the business model
- The attractiveness of a company’s financials
Portfolio allocations are made based on the relative merits of current portfolio holdings versus each other and potential candidates. Decisions are made on a collaborative basis, with all team members participating, and each member holding full accountability for each investment.
Sell discipline
The portfolio team looks to sell securities when:
- Other candidates offer better opportunities for growth
- Valuations become excessive
- Outlook for the company’s fundamentals erodes
Positions are trimmed as valuation appears incrementally less attractive
More information
Please contact us to learn more about this and other Westwood portfolios or to set up a meeting with a member of our team.