HighMark’s Large Cap Growth Equity strategy seeks to outperform the Russell 1000 Growth Index by favoring stocks with attractive growth and risk profiles that result from an ability to reinvest capital at returns above the cost of capital.
OVER THE LONG TERM, STOCK PRICES FOLLOW EARNINGS
Identify companies benefitting from long term secular growth tailwinds that can drive double-digit earnings and cash flow growth with an emphasis on sustainable growth.
AVOID OVERPAYING FOR WHAT APPEARS TO BE GROWTH
Focus on companies with compelling business models, sustainable competitive advantages, healthy balance sheets and strong management teams to identify high-quality businesses that can grow their earnings at an attractive rate.
EMPHASIZE RISK MANAGEMENT
Manage risk via thorough company-level due diligence, careful portfolio construction and sell disciplines while diversifying across multiple dimensions.
Hold portfolio companies for a sufficient time period to allow these firms to accrete value and for us to develop a deeper understanding of the company-specific factors that can drive changes in earnings