Osterweis US Small Cap Growth

The Osterweis US Small Cap Growth Strategy uses a strict valuation discipline to build a concentrated portfolio of high quality companies with rapid and sustainable revenue growth that along with long-term profits should generate outperformance over time.

 

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.

Why Osterweis Capital Management for US Small Cap Growth?

  • High conviction portfolio with a history of consistent outperformance since inception in 2006
  • Focus on companies early in their lifecycle operating in emerging industries that have yet to be 'discovered' or are 'overlooked'
  • Employment of a strict valuation discipline of a minimum of 100% potential upside for companies using an industry appropriate multiple
  • Collective team industry experience contribute to business evaluation and idea generation
  • Bottom up-fundamental investment process built on anchoir point framework which provides benefits on managing valatility, monitoring framework and high conviction
  • Diversification through investing in various stages of growth stock, combining Undiscovered / Misunderstood, Breakthrough and Proven Growth stocks
  • A highly expierence team with 18 investment professionals with on average 24 years of experience

 

Who is Osterweis Capital Management?

Osterweis Capital management was founded in 1983 to manage assets for individuals, families, endowments and institution. They commit to one purpose: To protect and grow clients' capital for the enduring security of multiple generations. Osterweis is located in San Francisco with over 50 employees and is privately held by a number of employees and two outside directors.

 

Unique Differentiators

Osterweis tries to identify companies relatively early in their lifecycles that have hit on some form of fundamental innovation in emerging market segments that have yet to be fully discovered.

 

Entry points

A fundamental misunderstanding of the unique advantages the company has and/or of the market potential ahead of it. Mismanagement, where the company’s potential at the moment isn’t being realized because of fixable executional mistakes or because the wrong people are in charge. Osterweis can find opportunity when a broad-based market correction takes valuations down across the board.

 

Anchor points

Osterweis wants the management of their companies to be able to clearly articulate and quantify what they believe the company can achieve looking out at least five years into the future.

 

Research advantage

Being in the Bay Area has allowed them to build a valuable contact network in almost all areas of technology. They regularly use expertnetwork research. Osterweis wants to do whatever they can to help credibly judge whether the anchor points are achievable.

 

Valuation does matter in growth investing  

Osterweis is strict on the discipline of wanting to see a minimum of 100% potential upside, using in calculating their target prices an industry appropriate P/E multiple that does not exceed 30x.

 

Osterweis US Small Cap Growth fund Document