Domestic Equities

Small Cap Growth

Use in-depth proprietary research to uncover investments with the potential to offer consistent returns over the long term and downside protection through market cycles.

Our experienced small cap equity investment team performs in-depth, bottom-up research to be early in identifying companies that exhibit fundamentally stable growth prospects.

Investment Philosophy

We believe that the key to achieving superior risk-adjusted returns is through a fundamental research process focused on being early to identify companies that exhibit stable growth prospects. These companies can grow sales and cash flows at a higher rate and more consistently than their peers that exhibit more volatility in these metrics.

Strategy Description

Our Small Cap Growth portfolio utilizes a growth investment strategy and consists of companies with a market capitalization that does not typically exceed the largest market capitalization company in the Russell 2000® Growth Index. We seek companies that are industry leaders and disruptors, with durable competitive advantages and multi-year growth opportunities. We integrate Environmental, Social and Governance factors into our fundamental research process.

Approach

Stable Growth

Companies exhibiting fundamentally stable growth prospects historically have outperformed the Russell 2000® Growth Index with less volatility and higher return per unit of risk as represented by the Sharpe and Information ratios1.

Resilience

The vast majority of companies that display strong, stable growth characteristics and distinct competitive advantages tend to have limited effects from macro headwinds versus their peers2. The strategy aims to remain consistent with the expectation of outperforming over a full market cycle.

Sell Discipline

The team utilizes a rigorous sell discipline as it believes the timely execution of the sell decision is critical for capturing gains and avoiding losses. This includes a proprietary quantitative risk screening tool, the "Check Engine Light."

Proprietary Valuation

A proprietary expectations-based discounted cash flow model for stock valuation helps identify long-term market expectations, drivers of value creation, and price sensitivity to those drivers.

Portfolio Managers

Brian C. Fitzsimons, CFA

Director of Small Cap Growth Strategies

READ BIO >

Mitch S. Begun, CFA

Senior Portfolio Manager

READ BIO >

Investment Vehicles

Separate Account

CIT

Literature

Recognitions

 

Small Cap Growth Manager of the Decade, Small Cap Growth Universe and Small Cap Universe3

 

Small Cap Growth 6 Stars, Small Cap Growth Universe4

Related Insights

Explore the views of our thought leaders on related topics.

Contact an Advisor Solutions team member to learn more

1Sharpe Ratio: Risk return metric calculated by subtracting the risk-free rate from the return of the portfolio and dividing that result by the standard deviation of the portfolio’s excess return. Information Ratio: A measurement of portfolio returns beyond the returns of a benchmark, usually an index, compared to the volatility of those returns.

2Based on risk return metrics for the top 3 deciles of growth/volatility in the small cap universe 1/1/1992-12/31/2020.

3On 2/17/22 SBH Small Cap Growth won the Zephyr PSN Top Guns Manager of the Decade award. You can find more information about the PSN Top Guns Award here. Segall Bryant & Hamill did not pay to participate in the PSN Top Guns award. PSN Top Guns Manager of the Decade. As of 12/31/21. Criteria: The PSN universes were created using the information collected through the PSN investment manager questionnaire and use only gross of fee returns. Mutual fund and commingled fund products are not included in the universe. PSN Top Guns investment managers must claim that they are GIPS compliant. Products must have an r-squared of 0.80 or greater relative to the style benchmark for the ten-year period ending December 31, 2021. Moreover, products must have returns greater than the style benchmark for the ten-year period ending December 31, 2021 and also standard deviation less than the style benchmark for the ten-year period ending December 31, 2021. At this point, the top ten performers for the latest ten-year period ending December 31, 2021 become the PSN Top Guns Manager of the Decade.

4On 11/17/22 SBH Small Cap Growth won the Zephyr PSN Top Guns award, PSN Top Guns 6 Star Category. You can find more information about the PSN Top Guns Award here. Segall Bryant & Hamill did not pay to participate in the PSN Top Guns award. PSN Top Guns 6 Star Category. As of 9/30/22. Criteria: The peer groups were created using the information collected through the PSN investment manager questionnaire and uses only gross of fee returns. PSN Top Guns investment managers must claim that they are GIPs compliant. Products must have an r-squared of 0.80 or greater relative to the style benchmark for the recent five-year period. Moreover, products must have returns greater than the style benchmark for the three latest three-year rolling periods. Products are then selected which have a standard deviation for the five-year period equal or less than the median standard deviation for the peer group. The top ten information ratios for the latest five-year period then become the TOP GUNS.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

All opinions expressed in this presentation are solely the opinions of Segall Bryant & Hamill. You should not treat any opinion expressed as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of the manager’s opinions. The opinions expressed are based upon information the manager considers reliable, but completeness or accuracy is not warranted, and it should not be relied upon as such. Market conditions are subject to change at any time, and no forecast can be guaranteed. Any and all information perceived from this presentation does not constitute financial, legal, tax or other professional advice and is not intended as a substitute for consultation with a qualified professional. The manager’s statements and opinions are subject to change without notice, and Segall Bryant & Hamill is not under any obligation to update or correct any information provided in this presentation.

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