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Mid Cap Growth
Jeffrey R. Bianchi, CFA
Head of U.S. Growth and Portfolio Manager
Chief Investment Officer, Equities
SummaryActively managed mid-cap growth strategy that relies on fundamental research and analysis to identify companies with strong and accelerating business momentum, increasing market acceptance and attractive valuations.
Successful active growth investing requires a forecast that is different from what the market is discounting
Understanding expectations is key to growth investing
- Most growth stocks stay growthy for 3 to 5 years
- Changes in expectations explain the majority of a growth stock’s change in relative price
- We seek companies whose expectations can rise
Everything is Relative
- A stock’s valuation and fundamentals should be considered in a relative framework
ObjectiveTo outperform the Russell Midcap Growth Index by 2-3% annualized before management fees over full market cycles with an expected annualized tracking error of approximately 4-6%.
ProcessOur disciplined, bottom-up strategy focuses on security selection, using rigorous fundamental research and analysis of the characteristics of individual companies. We begin with a quantitative evaluation of approximately 900 companies, comparing each to the universe as a whole and to the peers in the company's sector. Once the universe is ranked, the portfolio management team concentrates its efforts on highly ranked securities to add insight through in-depth fundamental analysis. Buy and sell decisions are mainly the product of qualitative judgments about business momentum, market recognition, and valuation.
- Investment philosophy has been successfully applied across various market cycles
- Disciplined, repeatable process driven by fundamental research
- Stable, experienced investment team leverages the resources of Voya’s Fundamental Equity platform
- Strong performance relative to the benchmark and peer group competitors since inception
- Close adherence to style assures suitability in a formal asset allocation process
Principal RisksThe principal risks are generally those attributable to stock investing. Holdings are subject to market, issuer and other risks, and their values may fluctuate. Market risk is the risk that securities may decline in value due to factors affecting the securities markets or particular industries. Issuer risk is the risk that the value of a security may decline for reasons specific to the issuer, such as changes in its financial condition. More particularly, growth-oriented stocks typically sell at higher valuations than other stocks. If a growth-oriented stock does not exhibit the level of growth expected, its price may drop sharply. Additionally, growth-oriented stocks have been more volatile than value-oriented stocks.
*There is no guarantee that this objective will be achieved.