Portfolio
Overview
Edgewood's Large Cap Growth Equity strategy pursues long-term capital growth through a portfolio of 22 stocks of predominately large size companies that are distinguished by their financial strength, levels of profitability, strong managements, and their ability to deliver long-term earnings power.
Performance Returns
Net Annual Performance Numbers
| Year | Annual | S&P 500 |
|---|---|---|
| 2014 | 13.7% | 13.7% |
| 2015 | 11.5% | 1.4% |
| 2016 | 3.4% | 12.0% |
| 2017 | 35.1% | 21.8% |
| 2018 | 2.6% | -4.4% |
| 2019 | 34.3% | 31.5% |
| 2020 | 42.6% | 18.4% |
| 2021 | 23.9% | 28.7% |
| 2022 | -40.2% | -18.1% |
| 2023 | 39.8% | 26.3% |
Past performance does not guarantee future results. Performance rounded to the nearest tenth. 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 trading commissions. The Edgewood Large Cap Growth Composite has had a performance examination for the periods January 1, 1992 through December 31, 2022.
Gross Annual Performance Numbers
| Year | Annual | S&P 500 |
|---|---|---|
| 2014 | 14.7% | 13.7% |
| 2015 | 12.5% | 1.4% |
| 2016 | 4.3% | 12.0% |
| 2017 | 36.3% | 21.8% |
| 2018 | 3.5% | -4.4% |
| 2019 | 35.4% | 31.5% |
| 2020 | 43.8% | 18.4% |
| 2021 | 24.9% | 28.7% |
| 2022 | -39.7% | -18.1% |
| 2023 | 41.0% | 26.3% |
Past performance does not guarantee future results. Performance rounded to the nearest tenth. Gross performance results are calculated before deduction of management fees. Net and gross returns are calculated after the deduction of actual trading expenses. Trading expenses comprise trading commissions. The Edgewood Large Cap Growth Composite has had a performance examination for the periods January 1, 1992 through December 31, 2022.
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 (MM) | % of Firm Assets | GIPS Firm Assets (MM) |
|---|---|---|---|---|---|---|---|---|---|
| 2014 | 14.7% | 13.7% | 13.7% | 13.1% | 404 | 0.24 | 3,310.1 | 29.7 | 11,141.8 |
| 2015 | 12.5% | 11.5% | 1.4% | 5.7% | 470 | 0.42 | 3,701.0 | 26.6 | 13,906.8 |
| 2016 | 4.3% | 3.4% | 12.0% | 7.1% | 525 | 0.24 | 3,964.4 | 25.4 | 15,578.2 |
| 2017 | 36.3% | 35.1% | 21.8% | 30.2% | 609 | 0.22 | 5,482.0 | 23.4 | 23,430.1 |
| 2018 | 3.5% | 2.6% | -4.4% | -1.5% | 632 | 0.25 | 5,409.8 | 21.6 | 25,044.9 |
| 2019 | 35.4% | 34.3% | 31.5% | 36.4% | 690 | 0.53 | 7,358.4 | 21.5 | 34,207.6 |
| 2020 | 43.8% | 42.6% | 18.4% | 38.5% | 802 | 0.55 | 10,456.4 | 20.3 | 51,392.0 |
| 2021 | 24.9% | 23.9% | 28.7% | 27.6% | 864 | 0.25 | 12,876.2 | 20.8 | 61,873.6 |
| 2022 | -39.7% | -40.2% | -18.1% | -29.1% | 643 | 0.38 | 6,427.5 | 22.4 | 28,756.7 |
| 2023 | 41.0% | 39.8% | 26.3% | 42.7% | 661 | 0.58 | 8,389.7 | 23.5 | 35,717.0 |
Past performance does not guarantee future results. Performance rounded to the nearest tenth. 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 trading commissions. Annual composite dispersion presented is an asset-weighted standard deviation of gross returns for accounts in the composite the entire year.
The Edgewood Large Cap Growth Composite has had a performance examination for the periods January 1, 1992 through December 31, 2022.
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.
Characteristics
Portfolio Characteristics as of 09/30/2024*
| Edgewood | S&P 500 | |
|---|---|---|
| Market Cap Mean (Billions)* | $551 | $955 |
| Number of Holdings | 22 | 504† |
| Most Recent Quarter YoY EPS Growth | 34%‡ | 2% |
| Sales Growth (3 Years Historical)* | 19% | 12% |
| Long Term EPS Growth* | 24% | 17% |
* 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.
† 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
‡ Most recent quarter YoY EPS (year over year earnings per share) growth figures reflect the period ended 6/30/24 except for Adobe, Copart, Intuit, Lululemon, NVIDIA and Synopsys 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 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. LLY’s most recent quarter YoY adjusted EPS growth rate is 86%.
* 2023-2025 earnings estimates for the S&P 500 along with the current quarter year over year earnings per share growth and 5-year estimated growth rates are based on most recently available information provided by Bloomberg.
Five Largest Portfolio Holdings as of 09/30/2024*
| Holdings |
|---|
| Microsoft Corp. |
| Netflix Inc. |
| S&P Global Inc. |
| ServiceNow Inc. |
| Uber Technologies Inc. |
* 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 investments in the securities identified were or will be profitable.
Portfolio holdings are shown in alphabetical order.
Sector Breakdown 09/30/2024*
*Sectors defined by Edgewood's Investment Committee and are rounded to the nearest tenth.
*Sectors defined by Edgewood's Investment Committee and are rounded to the nearest tenth.
Market Cap Exposure (in Billions) as of 09/30/2024*
* Market cap exposure rounded to the nearest tenth and is for the equity portion of the portfolio.
* Market cap exposure rounded to the nearest tenth 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, 2022. 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, 2022. 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 22.7% of the firm’s assets under management as of September 30, 2024.
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.