Investing Today in Tomorrow’s Big Companies

The portfolio managers seek to identify the fastest growing and highest quality companies for investment. Seeded with graduates from our micro cap portfolio we can hold great growth stocks much longer.

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Small Capitalization Equity Composite

Annualized Performance

As of 9/30/2022, performance reported in USD. Performance figures for less than one year are not annualized.  Information for Small Cap Growth based on composite returns calculated net of actual fees. Past performance is not an indicator of future performance, and the value of your account may increase or decrease over time. The NCGI Small Capitalization Equity Composite contains all fee-paying portfolios investing primarily in the equity securities of smaller U.S. companies that the portfolio manager believes have substantial potential for high long-term growth.  The portfolio manager seeks to identify the fastest growing and highest quality companies for investment.  Investment results are measured versus the Russell 2000® Growth Index.  Next Century Growth Investors claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute.  CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. Please click here for additional graph disclosures. For a GIPS Report click here: Small Capitalization Growth Equity GIPS Report

Investment Criteria

High Growth, High Quality

  • We invest in fast growing small cap companies that can become much larger companies over our holdings period
  • Diversified 40-60 stock portfolio with no single holding above 5%

Research

We Do Our Own Homework

  • Limited Wall Street coverage means these companies are less discovered by other investors
  • Using a variety of information sources built up over years of experience
  • Experienced team focused on uncovering the true risks and potential for these stocks

Buying

Finding the Next Big Company – Key Attributes We Look for:

  • Companies that are addressing growing, large markets
  • Differentiated product allowing market disruption and leadership
  • Strong, defendable competitive position
  • Organic revenue growth substantially faster than the benchmark index
  • Generally profitable and expanding margins even as they grow rapidly
  • Proven management team that can articulate a clear growth strategy

Selling

Strong Sell Discipline

  • If high growth thesis deteriorates, for any reason, we sell