Strategy

US Small-Cap Growth Equity

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.

3YR Return Annualised (Net)
(View Total Returns)

Tracking Error
(5 Years)

24.46%
6.89%

1YR Return (Net)
(View Total Returns)

Information Ratio
(5 Years)

27.22%
1.87

Inception Date 31-Dec-1995

Performance figures calculated in USD

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Joshua K.  Spencer, CFA
Joshua K. Spencer, CFA, Portfolio Manager

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.

 

Strategy

Investment Approach

  • 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.

Portfolio Construction

  • 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

Holdings

Total
Holdings
170
Largest Holding DocuSign 2.50% Was (31-Mar-2020) 2.52%
Other View Full Holdings Quarterly data as of 30-Jun-2020
Top 10 Holdings 23.39% View Top 10 Holdings Monthly data as of 30-Jun-2020

Top Purchase

HubSpot
1.76%
Was (31-Mar-2020) 0.48%

Top Sale

Gartner (E)
0.00%
Was (31-Mar-2020) 0.72%

Quarterly Data as of 30-Jun-2020

Sectors

Total
Sectors
8
Largest Sector Information Technology 35.32% Was (31-Mar-2020) 28.28%
Other View complete Sector Diversification

Monthly Data as of 30-Jun-2020

Benchmark: Russell 2000 Growth Index

Top Contributor^

Information Technology
Net Contribution 7.37%
Sector
0.02%
Selection 7.35%

Top Detractor^

Industrials & Business Services
Net Contribution -2.20%
Sector
0.18%
Selection
-2.38%

^Relative

Quarterly Data as of 30-Jun-2020

Largest Overweight

Information Technology
By13.76%
Portfolio 35.32%
Benchmark 21.56%

Largest Underweight

Health Care
By-7.78%
Portfolio 26.47%
Benchmark 34.25%

Monthly Data as of 30-Jun-2020

Team (As of 01-Oct-2020)

Joshua K.  Spencer, CFA

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 manager
    since
    2019
  • Years at
    T. Rowe Price
    16
  • Years investment
    experience
    22
Brian Dausch, CFA

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 at
    T. Rowe Price
    21
  • Years investment
    experience
    22

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GIPS® Information

T. Rowe Price ("TRP") claims compliance with the Global Investment Performance Standards (GIPS®). TRP has been independently verified for the twenty one- year period ended June 30, 2017 by KPMG LLP. The verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.

TRP is a U.S. investment management firm with various investment advisers registered with the U.S. Securities and Exchange Commission, the U.K. Financial Conduct Authority, and other regulatory bodies in various countries and holds itself out as such to potential clients for GIPS purposes. TRP further defines itself under GIPS as a discretionary investment manager providing services primarily to institutional clients with regard to various mandates, which include U.S, international, and global strategies but excluding the services of the Private Asset Management group.

A complete list and description of all of the Firm's composites and/or a presentation that adheres to the GIPS® standards are available upon request. Additional information regarding the firm's policies and procedures for calculating and reporting performance results is available upon request

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