The Global Spectrum of GrowthTheGlobalSpectrumofGrowth

Companies that generate strong, sustainable growth are valuable sources of long-term capital appreciation in a portfolio, but these businesses are rare, difficult to identify, and exist on a broad spectrum. 

The spectrum includes companies ranging across sectors, countries, and stages of their life cycles. We believe the most attractive companies generally fall into one of two main groups: emerging growers and stable growth compounders.

By applying an empirical lens to these two groups across nearly two decades, we can see how their investment characteristics have affected performance outcomes. This is important for growth investors to know as they steer through different market cycles.

While this framework helps explain growth equity performance, it is not a substitute for the bottom-up, fundamental analysis that hat we believe is essential to identify long-term growth investment opportunities.