In our separately managed equity accounts, clients own a portfolio of securities. For these accounts we are able to customize each portfolio based on individual needs such as equity exposure levels, legacy positions, specific investment restrictions, income needs, etc. that may not be met by a mutual fund.
Emerging Growth Composite (as of 3/31/19)
|QTD||YTD||1 YEAR||3 YEAR||5 YEAR||7 YEAR||10 YEAR||SINCE INCEPTION
|Emerging Growth Composite (gross)||19.72%||19.72%||12.62%||22.73%||13.46%||16.75%||19.91%||14.38%|
|Emerging Growth Composite (net)||19.44||19.44||11.48||21.50||12.31||15.59||18.72||13.24|
|Russell 2000 Growth Index||17.14||17.14||3.85||14.87||8.41||11.79||16.52||8.79|
|Emerging Growth Composite (gross)||Emerging Growth Composite (net)||Russell 2000 Growth Index|
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We believe that the proliferation of investment strategies employing short term trading has reduced the investment horizons of many investors, especially those in emerging companies. This has created an opportunity for longer term investors who have the patience and the historical experience to buy and hold as it often takes a number of years for these investments to realize their potential due to the emerging nature of their industries or niches.
We focus on identifying high quality companies in emerging industries and defensible growth niches that have open ended growth potential. We seek to buy the stocks of such companies before they are discovered or when investors are very skeptical about future prospects, and capture compound earnings growth over time.
We use a quantitative screen to help narrow the universe of potential investments. From this screen we apply equity research to these portfolio candidates. Our sources of research data come from visits with company management, discussions with competitors and customers, attendance at broker-sponsored conferences and trade shows, and examination of regulatory filings. We construct long-term revenue and earnings per share forecasts which we use to monitor intermediate progress of our holdings. Ideas are evaluated on a number of factors including, but not limited to, the rate of companies’ revenue growth, existence of a distinct proprietary advantage and/or a leading position in the industry, rising expected operating margins and the presence of a skilled management team. We focus on understanding the long-term goals of the company over a three to five year investment horizon. We often avoid companies that do not have measurable three to five year goals or will not share them with investors. We may sell a position if we believe it is overvalued, fundamentals erode or another more attractive investment is identified.
James L. Callinan
Vice President & Portfolio ManagerView Bio
James L. Callinan
Vice President & Portfolio Manager
Jim Callinan graduated from Harvard College (B.A. Economics), New York University (M.S. Accounting) and Harvard Business School (M.B.A.). Mr. Callinan holds the Chartered Financial Analyst designation.
Prior to joining Osterweis Capital Management in 2016, Mr. Callinan managed the Emerging Growth Partnership, LP, a concentrated small cap growth strategy he founded at RS and transitioned to his own firm. Before that, he was Co-Founder & Chief Investment Officer at RS Investments. He also co-founded the RS Growth Group LLC at Robertson Stephens Investment Management in 1996 and managed the RS Emerging Growth Fund from 1996 until 2010.
He began his career at Putnam Investments as an equity research analyst in 1987 and served as portfolio manager for the Putnam OTC Emerging Growth Fund from 1994 to 1996.
Mr. Callinan is an Executive Committee member of the Bay Area Make-A-Wish Foundation Advisory Board, the Weatherbie Capital (an Alger Company) Advisory Board and the Friends of Harvard Football Board.
Mr. Callinan is a principal of the firm and a Portfolio Manager for the emerging growth strategy. He is also a Portfolio Manager for the flexible balanced strategy.
Matthew C. Unger
Vice President & AnalystView Bio
Matthew C. Unger
Vice President & Analyst
Matt Unger graduated from Trinity University (B.S. Finance, cum laude) and Southern Methodist University, Cox School of Business (M.B.A.). Mr. Unger holds the Chartered Financial Analyst designation.
Prior to joining Osterweis Capital Management in 2016, Mr. Unger worked at Callinan Asset Management as a Research Analyst covering the health care service, medical technology and industrial sectors. Prior to that, he spent three years at RS Investments as a Research Associate covering small cap growth companies in the medical technology and industrial sectors. Before graduate school, Matt worked at Platte River Capital covering the medical device sector from 2008-2010.
Mr. Unger is an Analyst for the emerging growth strategy.
Bryan Wong graduated from Yale University (B.A. in Political Science and International Studies with distinction) and the University of California Berkeley, Haas School of Business (M.B.A., Investment Management Fellow). Mr. Wong holds the Chartered Financial Analyst designation and is a member of the CFA Society of San Francisco.
Prior to joining Osterweis Capital Management in 2014, Mr. Wong was a member of the investment team managing the endowment of the David and Lucile Packard Foundation. Before that, Mr. Wong was an Analyst from 2005 to 2009 at two long/short hedge funds.
Mr. Wong is an Analyst for the emerging growth strategy.
Past performance is not a guarantee of future results.
Rates of return for periods greater than one year are annualized. The information given for this composite is historic and should not be taken as an indication of future performance. Performance returns are presented both before and after the deduction of advisory fees. Portfolio returns are calculated daily, reflecting a time weighted return method. Portfolio returns reflect the reinvestment of dividends and other income and the deduction of brokerage fees, other commissions if any, and foreign withholding taxes. For the period 10/1/2012-12/31/2015, gross and net portfolio returns reflect the deduction of custodial, administrative, audit, legal, operating, and other expenses. Composite returns are calculated monthly by weighting portfolio returns by the beginning market value. For the period 7/1/2006-3/31/2014, composite net returns reflect the monthly deduction of an annual model advisory fee of 1.00%. Effective 4/1/2014, the composite net return is calculated using actual management fees.
Performance for the periods 7/1/2006-9/30/2012 and 10/1/2012-3/31/2016 represents the results of portfolios managed by the investment team while at RS Investment Management Co. LLC and Callinan Asset Management LLC, respectively, and employing the same investment strategy being used at OCM.
The Russell 2000 Growth Index is a market capitalization weighted index representing those stocks within the approximately 2000 smallest companies in the universe of U.S. equities that exhibit growth characteristics.
The institutional fee schedule is as follows: 1.00% on the first $25 million, negotiable above $25 million. Other fee schedules are available for accounts under $25 million
Clients invested in separately managed emerging growth accounts are subject to various risks including potential loss of principal, general market risk, small and medium-sized company risk, foreign securities and emerging markets risk and default risk. For a complete discussion of the risks involved, please see our Form ADV Brochure and refer to Item 8.
The Emerging Growth Composite includes all fee-paying separately managed accounts, limited partnerships, and mutual funds that are predominantly invested in a concentrated selection of the equity securities of small and medium capitalization companies that can rapidly grow revenues and earnings. Portfolios normally remain primarily invested in equity securities except in times of unusual market stress when a more defensive allocation may be deemed prudent. The non-equity portion may be invested in holdings such as cash, cash equivalents, short-term debt securities, mutual funds, and ETFs. The benchmark is the Russell 2000® Growth Index.