Edgewood Management LLC

Edgewood Large Cap Growth: Portfolio Overview

Portfolio Characteristics as of 12/31/2023*

  Edgewood S&P 500 Russell 1000 Growth
Market Cap Mean (Billions)* $404 $684 $1,049
Number of Holdings 21 503+ 446+
Most Recent Quarter YoY EPS Growth 53%^ 4% 8%
Sales Growth (3 Years Historical)* 15% 10% 13%
Long Term EPS Growth* 23% 15% 19%

* All portfolio characteristics produced by Refinitiv and are rounded to the nearest whole number with the exception of the Most Recent Quarter YoY EPS Growth which is calculated by Edgewood.

^ ^Most recent quarter YoY EPS (year over year earnings per share) growth figures reflect the period ended 9/30/23 with the exception of Adobe, Nike, Intuit, NVIDIA, and Lululemon whose fiscal quarters differ. These numbers are calculated based on company earnings reports and exclude the impact of non-recurring items not indicative of the underlying business, where appropriate. Blackstone’s EPS figure is actually Distributable Earnings per share as we believe it is the most relevant valuation metric. Eli Lilly’s EPS figure excludes the impact of acquired IPR&D charges because we believe it is most representative of Lilly’s core business activities. Acquired IPR&D charges may be incurred upon execution of licensing agreements and other asset acquisitions. LLY does not forecast acquired IPR&D charges due to the uncertainty of the future occurrence, magnitude, and timing of these transactions. Including IPR&D, LLY’s most recent quarter YoY adjusted EPS growth rate is -95%.American Tower’s EPS figure is actually Adjusted Funds from Operations per share as we believe it is the most relevant valuation metric. Illumina’s growth rate in the most recent quarter is calculated using reported adjusted operating profit which removes the effect of Grail dilution on YoY comparisons. We believe this metric is most representative of underlying business growth. ILMN’s most recent quarter YoY adjusted EPS growth rate is -3%.

+ Provided by S&P Dow Jones Indices. 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 returns basis with dividends reinvested. Russell 1000 Growth Index performance produced by Russell Investments.

Five Largest Portfolio Holdings as of 12/31/2023*

Holding
Intuit Inc.
Netflix Inc.
NVIDIA Corp.
ServiceNow Inc.
Visa Inc.

* Holdings are subject to change. Holdings are provided as of December 31, 2023, and represent the most recent information available to the public. Portfolio holdings are shown in alphabetical order. This information is supplemental to Edgewood's Annual Disclosure Presentation. The specific securities identified and described do not represent all of the securities purchased, sold or recommended for advisory clients, and the reader should not assume that investment in the securities identified were or will be profitable.

Sector Breakdown as of 12/31/2023*

Business Services 17.9%
Financials 17.4%
Consumer Discretionary 14.0%
Information Technology 12.4%
Medical Technology 11.9%
Media & Advertising 6.4%
Semiconductor Manufacturing 5.1%
Healthcare 3.7%
Consumer Staples 3.5%
Wireless 3.0%
Cash (USD) 2.6%
Industrials 2.2%

*Sectors defined by Edgewood's Investment Committee and are rounded to the nearest tenth.

Market Cap Exposure (In $Billions) as of 12/31/2023*

Less than $30 3%
$30-$75 15%
$75-$125 13%
$125+ 67%



*
Market cap exposure rounded to the nearest percentage and is for the equity portion of the portfolio

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, 2021. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. The Edgewood Large Cap Growth Composite has had a performance examination for the periods January 1, 1992 through December 31, 2021. 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 actual management expenses including performance based fees. Net and gross 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%. 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 Large Cap Model of generally 22 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 indices annually and over the long-term. The composite was created in January 2001 and the composite inception is January 1987. 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. Depending on the custodian’s treatment of foreign withholding taxes on dividends, interest, and capital gains, Edgewood’s performance figures reflect the performance of accounts which may be gross or net of foreign withholding taxes on dividends, interest, and capital gains.

Only discretionary accounts are included in the Large Cap Growth Composite. Effective January 1, 2021, Edgewood changed the minimum portfolio size for inclusion in the composite from $250,000 to $1,000,000. Effective July 1, 2013, Edgewood changed the minimum portfolio size for inclusion in the composite from $500,000 to $250,000. Additional information regarding previous composite minimums is available upon request. 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 23.5% of the firm’s assets under management as of December 31, 2023.

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 investments, calculating performance, and preparing GIPS Reports are available upon request.

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 and dividends are reinvested. GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.

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