Edgewood Management LLC

Philosophy & Process

Our Process

Earnings Growth Rate > S&P 500
Consistent Earnings Power
Dominant Market Share
Superior Management
Strong Cash Flow
Low Debt

Working List
(50-75 Companies)

Direct Management Contact
Discount Model
Intrinsic Value

Portfolio

Edgewood's Large Cap Growth strategy pursues long-term appreciation driven by investment in a concentrated group of U.S. growth stocks which Edgewood considers to be of a high quality.

Edgewood utilizes a multi-factor investment process designed to identify opportunities not fully reflected in market valuations. A combination of internally generated proprietary research and a refinement of externally sourced information are used to determine those companies that display:

  • Record of consistent earning power
  • Earnings growth rate in excess of the S&P 500
  • Dominant market position or proven strength
  • Attractive fundamental financial valuation
  • Superior management
  • Management/Insider ownership
  • Industry growth rate in excess of GDP growth

Based on the conviction gained through our comprehensive, proprietary analysis, we take significant positions in securities that we believe represent our best ideas, and we hold them for the long-term, dynamically trading them within a range of 2%-8% weighted positions when warranted.  Our largest positions often represent our largest discounts to present value with the biggest upside potential.  We are extremely valuation sensitive and typically have a three to five year holding period. 

Our Process