Edgewood Large Cap Growth : Performance
Gross Annualized Performance as of 03/31/2013
Returns are gross of management fees and rounded to the nearest tenth. Refer to footnotes below. S&P 500 performance produced by Standard and Poor’s. Russell 1000 Growth performance produced by Russell Investments. Past performance does not guarantee future results.
Net Annualized Performance as of 03/31/2013
Returns are net of management fees and rounded to the nearest tenth. Refer to footnotes below. S&P 500 performance produced by Standard and Poor’s. Russell 1000 Growth performance produced by Russell Investments. Past performance does not guarantee future results.
Gross Annual Performance Numbers
| Year | Annual | S&P 500 | Russell 1000 Growth |
|---|---|---|---|
| 1998 | 33.6% | 28.6 | 38.7 |
| 1999 | 25.4 | 21.0 | 33.2 |
| 2000 | -2.8 | -9.1 | -22.4 |
| 2001 | -15.5 | -11.9 | -20.4 |
| 2002 | -26.9 | -22.1 | -27.9 |
| 2003 | 32.7 | 28.7 | 29.8 |
| 2004 | 5.7 | 10.9 | 6.3 |
| 2005 | 5.2 | 4.9 | 5.3 |
| 2006 | 15.3 | 15.8 | 9.1 |
| 2007 | 24.2 | 5.5 | 11.8 |
| 2008 | -38.6 | -37.0 | -38.4 |
| 2009 | 31.8 | 26.5 | 37.2 |
| 2010 | 12.9 | 15.1 | 16.7 |
| 2011 | 4.6 | 2.1 | 2.6 |
| 2012* | 20.2 | 16.0 | 15.3 |
Past performance does not guarantee future results. Performance rounded to the nearest tenth.
* Not yet examined by Ashland Partners.
Net Annual Performance Numbers
| Year | Annual | S&P 500 | Russell 1000 Growth |
|---|---|---|---|
| 1998 | 33.0% | 28.6 | 38.7 |
| 1999 | 24.6 | 21.0 | 33.2 |
| 2000 | -3.0 | -9.1 | -22.4 |
| 2001 | -15.9 | -11.9 | -20.4 |
| 2002 | -27.4 | -22.1 | -27.9 |
| 2003 | 31.7 | 28.7 | 29.8 |
| 2004 | 4.9 | 10.9 | 6.3 |
| 2005 | 4.4 | 4.9 | 5.3 |
| 2006 | 14.4 | 15.8 | 9.1 |
| 2007 | 23.3 | 5.5 | 11.8 |
| 2008 | -39.2 | -37.0 | -38.4 |
| 2009 | 30.8 | 26.5 | 37.2 |
| 2010 | 12.0 | 15.1 | 16.7 |
| 2011 | 3.7 | 2.1 | 2.6 |
| 2012* | 19.1 | 16.0 | 15.3 |
Past performance does not guarantee future results. Performance rounded to the nearest tenth.
* Not yet examined by Ashland Partners
Large Cap Growth Composite
| Year | Gross Return | Net Annual Return | S&P 500 | Russell 1000 Growth | Number of Portfolios | Composite Dispersion | Total Assets in Composite | % of Firm Assets |
|---|---|---|---|---|---|---|---|---|
| 1998 | 33.6 | 33.0 | 28.6 | 38.7 | 12 | 8.5 | 120.6 | 7.8 |
| 1999 | 25.4 | 24.6 | 21.0 | 33.2 | 16 | 5.7 | 229.2 | 11.4 |
| 2000 | -2.8 | -3.0 | -9.1 | -22.4 | 19 | 2.5 | 242.5 | 10.7 |
| 2001 | -15.5 | -15.9 | -11.9 | -20.4 | 133 | 3.5 | 238.8 | 13.1 |
| 2002 | -26.9 | -27.4 | -22.1 | -27.9 | 121 | 3.3 | 181.5 | 11.6 |
| 2003 | 32.7 | 31.7 | 28.7 | 29.8 | 116 | 2.7 | 371.5 | 19.1 |
| 2004 | 5.7 | 4.9 | 10.9 | 6.3 | 118 | 1.0 | 414.6 | 18.2 |
| 2005 | 5.2 | 4.4 | 4.9 | 5.3 | 180 | 1.0 | 637.2 | 27.0 |
| 2006 | 15.3 | 14.4 | 15.8 | 9.1 | 239 | 0.9 | 1021.9 | 32.4 |
| 2007 | 24.2 | 23.3 | 5.5 | 11.8 | 343 | 1.1 | 1633.5 | 29.6 |
| 2008 | -38.6 | -39.2 | -37.0 | -38.4 | 357 | 0.6 | 1175.8 | 27.6 |
| 2009 | 31.8 | 30.8 | 26.5 | 37.2 | 343 | 1.2 | 2540.2 | 36.3 |
| 2010 | 12.9 | 12.0 | 15.1 | 16.7 | 293 | 0.6 | 2631.4 | 42.3 |
| 2011 | 4.6 | 3.7 | 2.1 | 2.6 | 293 | 0.5 | 2584.8 | 40.8 |
| 2012* | 20.2 | 19.1 | 16.0 | 15.3 | 274 | 0.5 | 2278.6 | 33.4 |
Past performance does not guarantee future results. Performance rounded to the nearest tenth.
* Not yet examined by Ashland Partners.
Edgewood Management LLC claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Edgewood Management LLC has been independently verified for the periods January 1, 1992 through December 31, 2011. 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. The Edgewood Large Cap Growth composite has been examined for the periods January 1, 1992 through December 31, 2011. The verification and performance examination reports are available upon request. Edgewood Management LLC is an SEC registered investment advisor. Past performance is no guarantee of future results. The performance data presented here should not be taken as any guarantee or other assurance as to future results. The value of any investment may increase or decrease over time. Performance results are expressed and calculated in U.S. dollars. Gross performance results are calculated before deduction of management fees. Net performance results are calculated after all trading and actual management expenses. Returns are calculated after the deduction of actual trading expenses. Trading expenses comprise of trading commissions. The management fee as disclosed in Part 2A of Edgewood’s Form ADV is 1.5% for accounts up to $5 million and 1% for accounts above $5 million. Actual investment advisory fees incurred by clients may vary.
The Large Cap Growth Composite is comprised of individual and institutional accounts that invest in Edgewood’s portfolio of 22 high-quality large capitalization growth companies chosen by using fundamental analysis and an internal valuation discipline. Edgewood strives to beat the S&P 500 and Russell 1000 Growth indexes annually and over the long- term. The composite was created in January 2001. Composites are valued monthly and portfolio returns have been weighted by using beginning of quarter market values plus weighted cash flows. Performance results reflect the reinvestment of dividends and other earnings. Trade date accounting has always been used. No alteration of composites as presented here has occurred because of changes in personnel. A complete list and description of the Firm’s composites is available upon request. Annual composite dispersion presented is an asset-weighted standard deviation calculated for accounts in composite the entire year. Edgewood shows performance net of withholding taxes on dividends, interest and capital gains.
Only discretionary accounts are included in the Large Cap Growth Composite. Effective January 1, 2008, Edgewood increased the minimum portfolio size for inclusion in the composite from $50,000 to $500,000. From inception to December 31, 2000, the performance results shown represent the Institutional Large Cap Growth Composite, which has the same strategy as the Large Cap Growth Composite, but it only includes tax exempt accounts. This composite is presented because taxable portfolios prior to 2001 typically held restrictions and legacy holdings that were not representative of the strategy. As of January 1, 2001, the results shown include taxable and tax exempt accounts that follow the composite strategy. The composite represents approximately 41% of the firm’s assets under management as of December 31, 2012.
From January 1, 1992 to December 31, 1997 accounts were included in the composite the first full month after opening. From January 1, 1998 to December 31, 2004 accounts were included in the composite at the end of its second quarter after opening. As of January 1, 2005 accounts are included in the relevant composite the first full quarter after their opening. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.
The three year composite deviation for 2012 in the Large Cap Growth Composite is 16.36%. The three year S&P 500 and Russell 1000 Growth deviations are 15.09% and 15.66% respectively. The three year composite deviation for 2011 in the Large Cap Growth Composite is 18.34%. The three year 2011 S&P and Russell 1000 Growth deviations are 18.70% and 17.76% respectively. The three year deviation is a GIPS requirement starting in 2011. It reflects the volatility in performance over a three year period.
The composite returns are benchmarked to the Standard & Poor’s 500 Index (“S&P 500”) and the Russell 1000® Growth Index (“R1000 Growth”). The benchmarks are used for comparative purposes only and generally reflects the risk or investment style of the investments reported on the schedules of investment performance. Investments made for the portfolios Edgewood manages according to its Large Cap Growth strategy may differ significantly in terms of security holdings, industry weightings, and asset allocation from those of the aforementioned indices. Accordingly, investment results and volatility will differ from those of the benchmarks. The S&P 500 is an unmanaged index with no expenses, which covers 500 industrial, utility, transportation and financial companies of US markets. It is a capitalization-weighted index calculated on a total return basis with dividends reinvested. The R1000 Growth measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth rates.