Small Core Equity
To consistently outperform the Russell 2000™ Index over a full market cycle (typically 3-5 years) with less than commensurate risk.
Granite’s investment philosophy is a fundamental and research driven approach to investing in a concentrated portfolio of high quality stocks. Our Small Core Equity strategy views investing as a continuum rather than mutually exclusive growth and value segments. Nearly all sectors, industries and stocks can demonstrate both growth and value characteristics depending on where they are in the economic or business development cycle. Granite is devoted to finding companies with strong management teams and superior business models that can also benefit from catalysts expected to drive gains in discretionary free cash flow, revenue, earnings and returns on invested capital. In many cases these companies have improving fundamentals and are selling below their intrinsic values.
- Process: Focus on unique business franchises where management strategies for growth or improving business fundamentals will increase intrinsic business value
- Concentrated: Portfolio typically holds 60 stocks
- Market Capitalization: Minimum market cap $100 million; $3 billion maximum market cap at time of purchase
- Diversified: Broad diversification across industries and sectors
- Low Turnover: Annual turnover between 40-60%
- Fully Invested: Not greater than 5% cash position generally