Growth Equity
Small Cap Growth Strategy
The Small Cap Growth Strategy objective is to outperform the Russell 2000® Growth Index over the long-term while producing lower risk scores than the benchmark.
Strategy Overview
- Chartwell’s Small Cap Growth Equity Strategy invests in companies that are experiencing healthy organic growth, while reporting stable to improving operating margins
- We initiate investments opportunistically and increase our position size as we gain greater conviction, with a maximum-security position size of 5%
- We objectively identify key growth drivers and objectives for each of our holdings. When companies fail to meet those objectives, these stocks are candidates for sale
Investment Philosophy
We seek to add value through quality stock selection, based on our in-depth fundamental research exclusively on small, rapidly growing companies.
We utilize proprietary quantitative sector-specific screens to identify equities that we believe have compelling growth profiles and rank well in other key metrics.
Key Facts (as of 12.31.2024)
| Strategy Inception | April 1, 1997 |
| Benchmark | Russell 2000® Growth Index |
| Investment Vehicles | Separate Account Mutual Fund |
| Range of Holdings | 70-100 |
| Max Position Size | 5% |
| Total Net Assets | $138M |
| Annualized Turnover | 58.6% |
| Active Share | 85.8% |
| Weighted Average Market Cap |
$7.2B |
The Russell 2000® Growth Index measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values.
London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). ©LSE Group 2025. FTSE Russell is a trading name of certain of the LSE Group companies. Russell® is a trademark of the relevant LSE Group companies and is used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor, or endorse the content of this communication.
Risk Considerations: Investing in small companies is based on the premise that relatively small companies will increase their earnings and grow into larger, more valuable companies. However, as with all equity investing, there is the risk that a company will not achieve its expected earnings results, or that an unexpected change in the market or within the company will occur, both of which may adversely affect investment results. Historically, small-cap stocks have experienced greater volatility than other equity asset classes, and they may be less liquid than larger-cap stocks. Thus, relative to larger, more liquid stocks, investing in small-cap stocks involves potentially greater volatility and risk. The biggest risk of equity investing is that returns can fluctuate and investors can lose money.