SMALL CAP GROWTH - Peregrine · 2014. 1. 16. · SMALL CAP GROWTH ® Profile Investment Process...
Transcript of SMALL CAP GROWTH - Peregrine · 2014. 1. 16. · SMALL CAP GROWTH ® Profile Investment Process...
SMALL CAP GROWTH®
Profile
Investment Process
Team Continuity
Portfolio Characteristics
Philosophy
Top 10 Holdings
Robert B. Mersky, CFA, 46 YearsPaul von Kuster, CFA, 40 YearsDaniel J. Hagen, CFA, 30 YearsWilliam A. Grierson, CFA, 22 YearsJames P. Ross, CFA, 25 Years
• Disciplined investment process consistently executed since 1976
• Seasoned team of 5 portfolio managers with an average of 33 years of experience
• Limited institutional client base
• Assets under management $742 million
5-Year earnings growth (forward) ..20%
P/E (forward 12) ............................... 18x
Weighted Avg. Cap. ($M) ............... 2,491
Median Cap. ($M) ............................ 1,927
P/B ...................................................... 3.9x
ROE ................................................ 13.1%
Dividend Yield ............................... 0.24%
Turnover (1-Year) ..............................84%
Stocks in portfolio.............................. 123
Hanesbrands
On Assignment
SS&C Technologies
Evercore Partners
Silver Spring Networks
Hub Group
Wabash National
DexCom
Vantiv
Argo Group
Rediscovery companies offer near-term earnings acceleration due to factors such as a change in management, an improved competitive position, a new product cycle or a cyclical upturn. We also look for companies that are takeover candidates. Rediscovery companies must provide a minimum of 40% EPS growth over the next twelve months, or sell at a 40% discount to a company’s takeover price.
benefitting from DISCOVERY and REDISCOVERY
Information Gap \ in•for•ma•tion gap \ n.: a disconnect between stock price and fundamentals. Information gaps occur most frequently and are most attractive in small, rapidly growing companies.
Fourth Quarter 2013
Significant Appreciation Potential, Downside Protection
Illustration of an INFORMATION GAP
Discovery Phase:For companies in the early stages of their investment cycle, we look for superior growth prospects (long-term EPS growth of at least 20%).
Rediscovery Phase:
We identify INFORMATION GAPS in Discovery and Rediscovery Phase Companies.
22% 20%
16x
22x
Long-term growth Estimated 3- to 5-year EPS growth
Price/Earnings Forward 12-months' estimated EPS
Peregrine vs. Russell 2000® Growth
Historical average as of December 31, 2013
163COMBINED YEARS
OF EXPERIENCE
Sector Weights
Above Benchmark Returns, Below Benchmark Volatility
CommitmentPeregrine’s Client Service & Marketing professionals are dedicated to understanding your individual needs, assuring customized client service and developing a long-term, attentive relationship.
Stefanie M. Adams (612) 343-7660RuthAnn DeFrang (612) 343-7639
800 LaSalle Avenue - Suite 1850Minneapolis, Minnesota 55402612/343-7600888/343-7600www.peregrine.com
©2014 Peregrine Capital Management
Peregrine Small Cap Growth
consumer 18%
healthcare 19%
industrials 16%
information technology 24%
financial 11%
energy 7%
materials 5%
Sector Weights
4%
6%
8%
10%
12%
14%
16%
18%
23% 24% 25% 26% 27%
Ret
urn
Risk
Russell 2000® Growth
Peregrine Small Cap Growth
Dates back to the inception of the benchmark on 1/1/79
The net of fee returns are adjusted for a 1% management fee. Returns reflect the reinvestment of dividends and interest. Past performance is no guarantee of future results.
Peregrine Small Cap Growth
Russell 2000® Growth
Growth of $10 million since Russell 2000® Growth Index inception (1/1/79 - 12/31/13)
Fourth 1 3 5 10 Quarter Year Years Years Years
Peregrine Small Cap Growth 8.7 47.9 19.4 28.1 10.5 15.3
Peregrine Net of Fees 8.4 46.4 18.2 26.8 9.4 14.2
Russell 2000® Growth 8.2 43.3 16.8 22.6 9.4 NA
Annualized Returns as of 12/31/13Since Inception
1/1/1976