Definitions of Holding Styles

  • Aggressive Growth Investors

    in this category invest in companies that have very high revenue, EPS growth rates and multiples relative to the overall market. These companies usually do not pay any dividends and are at the early stages of growth. Aggressive Growth investors exhibit a higher portfolio turnover than other styles of investors.

  • Growth

    Investors in this category invest in companies with multiples and growth rates higher than the market but do not like to pay extremely high multiples. Growth Investors are not sensitive to yield.

  • GARP − Growth at a Reasonable Price

    GARP investors invest in companies that are valued at a discount to the market but are expected to grow faster than the overall market. GARP investors tend to exhibit longer holding periods, and are not sensitive to yield. Portfolio holdings include companies that are temporarily out of favor in the market.

  • Value

    Value investors invest in companies that trade at low valuation levels (low P/Es, Price/Book, and PEG) in general, in relation to the market and their peers, and also in relation to their own historic valuation levels. Companies are fundamentally strong and exhibit slow and steady growth characteristics over time. Value investors are long term holders with low portfolio turnover rates.

  • Deep Value

    Investors in this category employ an extreme style of value investing where they invest in companies with very low valuations versus their own historic valuation, and in relation to the overall market. Usually the companies or the industries they are in have been out of favor in the marketplace for an extended period of time.

  • Broker

    This style is applied to firms whose holdings are the result of brokerage inventory.

  • Yield

    Yield investors are sensitive to a high dividend yield and invest in companies with yield levels very high compared to the market yield, and have a history of paying and increasing dividends over time.

  • Specialty

    Applied to firms with investment strategies that cannot be categorized due to the specific nature of their focus. Industry or sector specific focus is the most common example of a Specialty investor.

Holdings Styles continued:

  • Alternative

    Alternative is applied to Hedge Funds that primarily use various strategies that fall outside the traditional investment strategies that can be categorized as the above.

  • Externally Managed

    This style is applied to firms whose holdings are managed externally.

  • Index

    Index investors rely on pre-determined indexes (e.g., S&P 500, Russell 2000, etc.) to determine which stocks or bonds to invest in.

  • Other

    This style is applied to companies that are not investment firms, such as public companies.

Definitions of Turnover Styles

Portfolio Equity Turnover is the measure of how frequently a portfolio buys or sells securities over a 12 month period.

It is calculated as the sum of the dollar values of buys and sells over a given period, divided by the sum of the beginning and ending equity assets over the same period, reported as an annualized percentage.

A portfolio with a turnover rate of 100% replaces its entire portfolio throughout the course of a 12-month period, whereas, a portfolio with a turnover rate of 50% replaces half of its holdings during the same time.

  • Low Turnover (0-33.3% per year)
  • Medium Turnover (33.3 -66.6% per year)
  • High Turnover (66.6-100% per year)
  • Very High Turnover (Over 100% per year)
  • N/A (Turnover not calculated due to insufficient filing information.)