The US Small-Cap Growth II Equity Composite seeks long-term capital growth primarily though investment in common stocks of small, rapidly growing companies, generally with an investment weighted median market cap of 150-200%, relative to that of the Russell 2000 Growth Index.
- Focus on companies possessing a market cap within the range of those included in the Russell 2000 Growth Index at time of purchase with at least 15% sustainable annual earnings growth.
- Integrate fundamental research to identify the long-term winners — face-to-face meetings with company management are critical.
- Determining the sustainability of growth drivers is key.
- A long-term orientation, coupled with a low-turnover approach, can allow earnings to compound and can reduce trading costs.
- Assess valuation relative to expected growth.
- Identify and own small emerging growth companies that can be much larger over time.
- Investing in small companies involves greater risk than is customarily associated with larger companies, since small companies often have limited product lines, markets, or financial resources.
- Typically 250-300 securities
- Positions typically range from 0.10% to 2.00%
- Sector weights are the result of bottom-up stock selection — broadly benchmark aware Reserves typically 3% or less
|1 YR||3 YR
|Composite Gross %||28.16%||25.39%||19.77%||22.00%|
|Composite Net %||27.22%||24.46%||18.89%||21.11%|
|Excess Return (Gross) %||24.68%||17.53%||12.91%||9.08%|
|3 MonthsData as of 30-Jun-2020||Year to DateData as of 30-Jun-2020|
|Composite Gross %||37.68%||21.01%|
|Composite Net %||37.44%||20.57%|
|Excess Return (Gross) %||7.10%||24.07%|
Past performance is not a reliable indicator of future performance.
Returns for time periods greater than one year are annualised.
Gross performance returns are presented before management and all other fees, where applicable, but after trading expenses. Net of fees performance reflects the deduction of the highest applicable management fee that would be charged based on the fee schedule contained within this material, without the benefit of breakpoints. Gross and net performance returns reflect the reinvestment of dividends and are net of all non-reclaimable withholding taxes on dividends, interest income, and capital gains.
Information TechnologyNet Contribution 7.37%
Industrials & Business ServicesNet Contribution -2.20%
Josh Spencer is the lead portfolio manager for the QM US Small-Cap Growth Equity Strategy, including the New Horizons Strategy, of the U.S. Equity Division. He is president of the New Horizon strategy’s Investment Advisory Committee. Josh is a vice president and member of the Investment Advisory Committees for the Global Technology Equity, US Mid-Cap Growth Equity, US Small-Cap Core Equity, and the Science & Technology Equity Strategies. He also is an Investment Advisory Committee member of the US Growth Stock and US Large-Cap Growth Equity Strategies. Josh is a vice president of T. Rowe Price Group, Inc.
Josh’s investment experience began in 1998, and he has been with T. Rowe Price since 2004, beginning in the U.S. Equity Division. He was an investment analyst from 2004 to 2012, covering semiconductors and equipment in the technology industry. Josh also was the portfolio manager of the Global Technology Equity Strategy for nearly seven years. Prior to T. Rowe Price, Josh was employed by Fidelity Investments as a research analyst and a sector fund portfolio manager, specializing in the consumer industry.
Josh earned a B.A. in economics from Johns Hopkins University, where he was awarded the Max Hochschild Prize for Outstanding Student in Economics; an M.A. in economics from the University of Chicago, where he was awarded the full-tuition Century Scholarship; and an M.B.A. in finance and accounting from The University of Chicago, Booth School of Business, where he was on the dean’s list, an active member of the Investment Management Group, and the editor of the Chicago Advisor investment newsletter. He is a member of Phi Beta Kappa. Josh also has earned the Chartered Financial Analyst® designation.
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
- Portfolio manager2019
- Years at16
T. Rowe Price
- Years investment22
Brian Dausch is a portfolio specialist in the U.S. Equity Division of T. Rowe Price. He is a member of the Global Natural Resources Equity, US Mid-Cap Growth Equity, US Small-Cap Growth Equity, QM US Small-Cap Growth Equity, and Health Sciences Strategy teams, working closely with institutional clients, consultants, and prospects. Mr. Dausch is a vice president of T. Rowe Price Group, Inc.
Mr. Dausch has 22 years of investment experience, 21 of which have been at T. Rowe Price. He joined the firm in 1998; prior to his current position, he managed the U.S. Equity Portfolio Analysis Group. Mr. Dausch also served as an associate research analyst in the U.S. Equity Division in health care, specializing in biotechnology and pharmaceutical company research.
Mr. Dausch earned a B.S. in business administration, with a concentration in finance, from the University of Delaware. He also has earned the Chartered Financial Analyst designation.
- Years at21
T. Rowe Price
- Years investment22