Feb 27, 2018
Growth Strategy Honored – PSN Top Guns Large Cap Universe
Meritage Growth Equity Strategy Again Awarded Top Guns Distinction in National Database Performance Results
The Growth Equity strategy from Meritage Portfolio Management was awarded the “Top Guns Large Cap Universe” designation at year-end 2017 within the Informa Investment Solutions (IIS) PSN manager ranking database. This well-respected quarterly ranking is widely used by institutional asset managers and investors. PSN is the longest-running investment manager database in North America.
PSN evaluated products in six proprietary categories in over 50 universes. To achieve the designation of 5 stars, products must have an R-Squared of 0.80 or greater relative to the style benchmark for the recent five-year period. Moreover, products must have returns greater than the style benchmark for the latest three-year rolling periods. After that they select only the products with a standard deviation for the five-year period equal to or less than the median standard deviation for the peer group. The top ten returns for the latest three-year period then become the Top Guns. Please see our PSN report highlighting this achievement.
“A crucial reason why we differ from most traditional growth strategies is because our process emphasizes a cash flow valuation component that applies to both the buy and sell decision,” said Len Mitchell, lead portfolio manager since the strategy’s inception in 1998. “This results in a more circumspect view of high priced popular growth stocks.”
Previous PSN Top Guns Recognition
The Meritage Growth Equity strategy has previously received Top Gun honors, most recently in June 2017 with recognition as Top Guns Bull & Bear Master, where the strategy was in the top ten portfolios with an upside market capture over 100 and a downside market capture less than 100 relative to the style benchmark. The strategy also achieved Top Gun honors in 2013 as Top Guns of the Decade; the strategy ranked number three out of 316 managed strategies in the PSN Large Cap Growth universe at that time.
About the Meritage Growth Equity strategy
The Meritage Growth Equity strategy is actively managed and combines quantitative and qualitative insights to construct portfolios of 45 to 60 stocks. Initially, a broad universe of companies across the capitalization spectrum are screened, ranked and scored using the firm’s multifactor model to generate a list of purchase candidates that have sustainable, high quality earnings growth, balance sheet strength, business momentum and factors which indicate management’s capital spending efficiency. Final stock selection employs qualitative insights that include a complete review and understanding of the factors that caused a stock to score well, assessment of a variety of variables which are idiosyncratic to the business and likely to impact short and medium term risk/return characteristics, and our objectives regarding portfolio diversification.
About Meritage Portfolio Management
Meritage Portfolio Management is an institutionally based investment management firm, providing asset management for families, foundations, endowments, corporations and qualified retirement plans. The firm manages $1.6 billion in assets for local, regional, and national clients from its base in Overland Park, Kansas. Meritage employs a highly systematic investment process in the selection of securities for three distinct equity strategies.
Meritage Portfolio Management claims compliance with the Global Investment Performance Standards (GIPS). A compliant presentation for the Meritage Growth Equity Composite can be accessed by e-mailing firstname.lastname@example.org or calling the main office line, ph. 913-345-7000.
About PSN Database
The PSN database is the world’s longest-running and most robust manager database, containing over 20,000 institutional investment products reported by more than 2,000 managers within the system. PSN and Informa Investment Solutions have no affiliation with Meritage Portfolio Management. A full list of PSN Top Guns along with ranking explanation can be viewed on the www.informais.com website, accessible via complimentary login.
Past performance is not a guarantee of future results. Investing involves risk, including the possible loss of principal. The information contained herein does not constitute personalized investment advice and should not be considered as a solicitation to buy or sell any security or engage in a particular investment strategy.