Next Century Growth US Small Cap Growth

The Next Century Growth (NCG) US Small Cap Growth Strategy  is a high conviction, high alpha generating strategy that seeks to invest in the fastest growing and highest quality small cap companies in America.


Why US Small Cap Growth?

  • The primary advantage of investing in small-cap stocks is the significant upside growth potential that is unmatched by larger companies.
  • Due to limited coverage there are many inefficiencies that can be exploited. The average active manager outperforms the benchmark with 2.64% annualized before fees (10y period till 31-12-2022)


Why Next Century Growth for US Small Cap Growth?

  • Employee owned boutique following stocks from Micro cap to large cap
  • Stable and experienced team of 5 portfolio managers with over 100 years of combined investment experience
  • High conviction portfolio consistently outperforming the benchmark since inception in 1999
  • Disciplined approach to growth stock investing, which has endured numerous economic and market cycles
  • Using fundamental analysis to identify companies that will surpass consensus earnings estimates - the number one predictor of future outperformance
  • NCG does direct research which enables them to gain firsthand knowledge of new and exciting growth trends each year
  • Strong sell discipline which ensures the portfolio holdings have healthy fundamentals
  • PM's operate as a team throughout all aspects of the investment process which generates in-depth growth stock analysis, healthy stock specific and portfolio discussions and a streamlined decision making process
  • Firmwide fully integrated ESG approach


Who is Next Century Growth Investors?

Next Century Growth is an independent investment firm specializing in high growth equity portfolios. Based in Minneapolis, they have one simple goal: produce strong investment returns for our clients utilizing a disciplined, growth focused investment strategy. They are an independent and specialized investment firm owned by the portfolio managers who has delivered investment results for institutional clients since its inception in 1999.


Principal Investment Philosophy

NCG invests in fast growing small cap companies having the potential to become much larger companies during the holdings period.  Key attributes NCG is looking for:


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


By investing in companies that have the potential to grow faster and more consistently than those in the benchmark, we believe over portfolio will, over the long-term, perform better than the unmanaged index.