- Portfolio Managers
The Small/Mid Cap Growth strategy generally invests in companies that are within the same market capitalization range at the time of investment as those included in the Russell 2500® Growth Index.
|Composite Assets as of 12/31/2016:||$121 million
Total strategy assets*: $121m
|Open to New Investors:||Yes|
|Separately Managed Accounts Minimum Initial Investment:||$1 million|
|Investment Vehicles:||Separately managed account|
*Total strategy assets include all assets managed in the strategy style. Composite assets include those accounts that meet the composite objectives and eligibility requirements. Please click here for descriptions of composite objectives and eligibility requirements.
Performance as of 12/31/2016 | updated quarterly
|Composite/Index||QTR||YTD||1 Year||3 Year||5 Year||10 Year||Since Inception*|
|Driehaus Small/Mid Cap Growth Composite (Gross)||-3.55%||6.63%||6.63%||3.60%||n/a||n/a||12.14%|
|Driehaus Small/Mid Cap Growth Composite (Net)||-3.72%||5.87%||5.87%||2.86%||n/a||n/a||11.39%|
|Russell 2500® Growth Index1||2.60%||9.73%||9.73%||5.45%||n/a||n/a||12.42%|
Sources: Driehaus Capital Management LLC, Russell Investments
*Inception Date: 2/1/2012
The performance data represents the strategy’s composite of small/mid cap growth accounts managed by Driehaus Capital Management LLC (DCM) (the composite). These returns are estimated for the period as all underlying accounts have not yet been reconciled. All rates of return include reinvested dividends and other earnings. Net of fee returns reflect the payment of advisory fees and in some instances, other fees and expenses such as administrative and transfer fees while the gross of fee returns do not. Both are net of brokerage commissions charged to the accounts. The performance data shown above represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Please see the notes section for other important information.
The performance results for the Composite are shown in comparison to an index. While the securities comprising the indices are not identical to those in any account in the Composite, the Company believes this may be useful in evaluating performance. Unlike the Composite, the index is not actively managed and does not reflect the deduction of any advisory or other fees and expenses.
1The Russell 2500® Growth Index measures the performance of those Russell 2500® Index companies with higher price to book ratios and higher forecasted growth values. The performance data includes reinvested dividends.
The Russell 2500® Growth Index is a trademark/service mark of the Frank Russell Company. Russell is a trademark of the Frank Russell® Company.
For additional disclosure on the Composite, please click here.
|as of 12/31/2016 | updated quarterly|
|Number of Holdings||115||1,469|
|Weighted Avg. Market Cap (M)||$5,457||$4,370|
|Median Market Cap (M)||$4,352||$1,224|
|Active Share (3-year avg.)**||86.89||n/a|
|Market Cap Breakout|
|< $2.5 billion||24.8%||31.4%|
|$2.5 - $15 billion||71.0%||68.6%|
|> $15 billion||4.3%||0.0%|
|as of 12/31/2016 | updated quarterly|
Top 5 Holdings***
|as of 12/31/2016 | updated monthly|
|1.||Lumentum Holdings, Inc.||1.9%|
|4.||ZELTIQ Aesthetics, Inc.||1.5%|
|5.||Alaska Air Group, Inc.||1.5%|
Sources: Driehaus Capital Management LLC, Factset Research Systems, Inc., eVestment Alliance
Benchmark: Russell 2500® Growth Index
*Portfolio characteristics represent the strategy’s composite
**Data is calculated monthly.
***Holdings subject to change.
TERMS: Active share represents the share of portfolio holdings that differ from the benchmark index holdings. Average drawdown is the arithmetic average of declines in value during a given period of time. Downside risk is a measure of the average deviations of a negative return series. A large downside risk implies that there have been large swings or volatility in the manager’s return series. Beta is a measure of a portfolio’s volatility. A beta of 1.00 implies perfect historical correlation of movement with the market. A higher beta manager will rise and fall more rapidly than the market, whereas a lower beta manager will rise and fall slower. Standard deviation is a measure of the average deviations of a return series from its mean; often used as a measure of portfolio volatility. A large standard deviation implies that there have been large swings or volatility in the manager’s return series. Tracking error measures of the amount of active risk that is being taken by a manager. Tracking error accounts for the deviation away from the benchmark and does not indicate in which direction it occurred, either positive or negative. Alpha is the measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of a mutual fund and compares its risk-adjusted performance to a benchmark index. The excess return of the fund relative to the return of the benchmark index is a fund’s alpha. Sharpe ratio is calculated by finding the portfolio’s excess return and then dividing by the portfolio’s standard deviation. Information Ratio (IR) measures a portfolio manager’s ability to generate excess returns relative to a benchmark, but also attempts to identify the consistency of the investor. This ratio will identify if a manager has beaten the benchmark by a lot in a few months or a little every month. The higher the IR the more consistent a manager is and consistency is an ideal trait. R-Squared is a statistical measure that represents the percentage of a fund or security’s movements that can be explained by movements in a benchmark index. For fixed-income securities, the benchmark is the T-bill. For equities, the benchmark is the S&P 500.
For additional disclosure on the Composite, please click here.
Driehaus Capital Management LLC (DCM) is a registered investment adviser with the United States Securities and Exchange Commission (SEC). DCM provides investment advisory services using growth equity strategies to individuals, organizations, and institutions. The firm consists of all accounts managed by DCM (the Company). Prior to October 1, 2006, the firm included all accounts for which Driehaus Capital Management (USVI) LLC (DCM USVI) acted as investment adviser. On September 29, 2006, DCM USVI ceased conducting its investment advisory business and withdrew its registration as a registered investment adviser with the SEC. Effective September 30, 2006, DCM USVI retained DCM as investment adviser to these portfolios.
DCM claims compliance with the Global Investment Performance Standards (GIPS®).
This performance information is estimated for the period as not all underlying accounts have yet been reconciled. All rates of return include reinvested dividends and other earnings. Net of fee returns reflect the payment of advisory fees and in some instances, other fees and expenses such as administrative and transfer fees while the gross of fee returns do not. Both are net of brokerage commissions charged to the accounts.The performance data shown represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted.
COMPOSITE OBJECTIVES AND ACCOUNTS ELIGIBLE FOR THE SMALL/MID CAP GROWTH COMPOSITE
The Small/Mid Cap Growth Composite includes all unleveraged “small mid cap growth” accounts over which DCM exercises discretionary investment authority of both cash and equities using the same investment objective and philosophy.
An account is considered to be a small/mid cap growth account if it primarily invests in U.S equity securities of high growth companies with market capitalization range at the time of purchase as those included in the Russell 2500® Growth Index.
Once an account has met the above criteria and is fully invested, it is included in the Composite in the next full monthly reporting period. Accounts that change investment strategies are transferred between composites in the first full monthly reporting period in which the account is managed under the new style. Terminated accounts are excluded from the Composite in the first month in which they are not fully invested as of the end of the month.
Lead Portfolio Manager
Jeffrey James is the portfolio manager for the Micro Cap Growth, Small Cap Growth and Small/Mid Cap Growth strategies. In his role as portfolio manager, he has final responsibility for the strategies portfolio construction, risk management and buy/sell decisions. Additionally, he is responsible for implementation of the investment philosophy, idea generation as well as the evaluation of macro-level trends and the market environment.
Mr. James began his career with Lehman Brothers in 1990. From 1991 to 1997, he worked at the Federal Reserve Bank of Chicago as an analyst and joined Driehaus Capital Management in 1997 as a sector analyst covering the information technology and energy sectors for the firm’s Small Cap Growth and Mid Cap Growth strategies. In 1998, he began managing the Driehaus Micro Cap Growth strategy. From 2001 to 2005, he also served as portfolio manager for the firm’s long/short hedge fund. He was named portfolio manager of the Driehaus Small Cap Growth strategy in 2006. Mr. James received his B.S. in finance from Indiana University in 1990 and his MBA from DePaul University in 1995.
Assistant Portfolio Manager
Michael Buck is the assistant portfolio manager for the Micro Cap Growth, Small Cap Growth, and SMID Cap Growth strategies. In his role as assistant portfolio manager he is responsible for providing depth of leadership to the research team and identifying appropriate investment ideas relevant to thestrategies. Additionally, Mr. Buck acts as a senior analyst focusing on U.S. micro and small cap stocks within the consumer discretionary, consumer staples and financials sectors.
Mr. Buck began his career at Deloitte Consulting, LLC as a business analyst until he joined Driehaus Capital Management in 2002. He received his B.A. and B.M. in economics and cello performance from Northwestern University in 2000.