small cap growth · profile. investment process team continuity. portfolio characteristics...
TRANSCRIPT
SMALL CAP GROWTH®
Profile
Investment Process
Team Continuity
Portfolio Characteristics
Philosophy
Top 10 Holdings
unknown DISCOVERY established overlooked REDISCOVERY
informationgap
informationgap
opportunityfor profit
actual stock price
company'sreal value
SELL
BUY
SELL
BUY
opportunityfor profit
Robert B. Mersky, CFA, 44 YearsPaul von Kuster, CFA, 38 YearsDaniel J. Hagen, CFA, 28 YearsWilliam A. Grierson, CFA, 20 YearsJames P. Ross, CFA, 23 Years
• �Disciplined investment processconsistently executed since 1976
• Seasoned team of 5 portfolio managers with an average of 31 years of experience
• Limited institutional client base
• Assets under management $639 million
5-Year�earnings�growth�(forward)�..21%
P/E�(forward�12)�............................... 15x
Weighted�Avg.�Cap.�($M)�............... 1,789
Median�Cap.�($M)�............................ 1,370
P/B�...................................................... 3.1x
ROE�................................................ 13.2%
Dividend�Yield�............................... 0.47%
Turnover�(1-Year)�..............................77%
Stocks�in�portfolio.............................. 125
Parametric�Technology
OSI�Systems
SS&C�Technologies
Gentex
Hanesbrands
InterXion�Holding
Bankrate
Evercore�Partners
Zoll�Medical
Cadence�Design�Systems
Discovery Phase:For�companies�in�the�early�stages�of �their�investment�cycle,�we�seek�evidence�of �high�growth�prospects�(long-term�EPS�growth�greater�than�20%).��Rapid�earnings�growth�will�attract�the�attention�of �investors�who,�in�turn,�will�bid�up�the�stock�price�to�accumulate�shares.
Rediscovery Phase:�The�majority�of �the�portfolio’s�Rediscovery�companies�have�re-emerged�after�a�period�of �difficulty�and�are�characterized�by�near-term�earnings�acceleration�due�to�factors�such�as�a�change�in�management,�a�new�product�cycle�or�a�cyclical�upturn.�We�also�look�for�companies�that�have�assets�that�are�undervalued.�Rediscovery�companies�must�provide�a�minimum�of �40%�EPS�growth�over�the�next�twelve�months,�or�sell�at�a�40%�discount�to�asset�value.
benefitting from�DISCOVERY�and�REDISCOVERY
combinedyears of
experience
153
“�Our� research� process� uncovers� information� gaps� in� small,�rapidly� growing� or� misunderstood� companies� with� the�potential�for�dramatic�stock�price�appreciation.”
First Quarter 2012
Sector Weights
Above Benchmark Returns, Below Benchmark Volatility
CommitmentPeregrine’s�Client�Service�&��Marketing�professionals�are�dedicated�to�understanding�your�individual�needs,�assuring�customized�client�service�and�developing�a�long-term,�attentive�relationship.
Stefanie M. Adams (612) 343-7660RuthAnn DeFrang (612) 343-7639
800�LaSalle�Avenue�-�Suite�1850Minneapolis,�Minnesota�55402612/343-7600888/343-7600www.peregrine.com
©2012�Peregrine�Capital�Management
Peregrine Small Cap Growth
consumer 17%
healthcare 15%
industrials 17%
information technology 28%
financial 10%
energy 9%
materials 4%
Sector Weights
4%
6%
8%
10%
12%
14%
16%
23% 24% 25% 26% 27%
Ret
urn
Risk
Russell 2000® Growth
Peregrine Small Cap Growth
Dates back to the inception of the benchmark on 1/1/79
Peregrine Small Cap Growth
Russell 2000® Growth
Growth of $10 million since Russell 2000® Growth Index inception (1/1/79 - 3/31/12)
The�net�of �fee�returns�are�adjusted�for�a�1%�management�fee.��Returns�reflect�the�reinvestment�of �dividends�and�interest.�Past�performance�is�no�guarantee�of �future�results.
1 3 5 10 20Year Years Years Years Years
Peregrine Small Cap Growth 3.2 33.5 5.9 7.2 10.2 14.8
Peregrine Net of Fees 2.2 32.2 4.9 6.2 9.1 13.7
Russell 2000® Growth 0.7 28.4 4.2 6.0 6.3 NA
Annualized Returns as of 3/31/12Since Inception
1/1/1976