We integrate a top-down, theme-based approach with a fundamental bottom up research process to selectively invest in 70-90 US small cap growth equity securities.
QUANTITATIVE ANALYSIS: we screen the universe of companies with market capitalizations of $500 million - $10 billion for small cap and between $1 - $25 billion for SMID, seeking to identify companies with strong/improving fundamentals, low debt levels, and high/improving profitability.
THEMATIC APPROACH: Themes represent emerging trends based on quantitative market-based signals and are the foundation for our sector and stock outlook.
FUNDAMENTAL RESEARCH: Our fundamental research is focused on companies that we believe are the beneficiaries of secular, structural and transformative changes. We particularly focus on signs of future positive inflection points in a company’s growth curve, such as new management or new product introductions, and positive secular changes in the supply/demand characteristics of an industry, to help us identify the potential earnings growth of the company. We seek to understand management’s vision for growth and its ability to execute on that vision.
PORTFOLIO CONSTRUCTION: Once a company has passed through the firm’s rigorous investment research, the portfolio construction process incorporates the firm’s insights into developing demographic, sociological, economic and political trends. These developments are the 10-15 “themes” embedded in the portfolio and answer the important question, “Why this stock at this particular time?” We also understand that there are many paths to growth for smaller companies, and our process seeks to use the experience of our team to exploit these.
RISK MANAGEMENT: We apply risk tools to identify and manage risk at the portfolio, sector and stock level. Although Lisanti Capital Growth LLC., may take efforts to mitigate risks, certain risks cannot be eliminated or controlled and there are no guarantees that any risk management strategies or investment strategies implemented will be successful notwithstanding such efforts to mitigate risk.