Nicholas Investment Partners

Our Approach

Our experience has shown us that investing in successful, growing companies—ones that manage change advantageously and are poised to exceed expectations—has the potential to result in capital appreciation. The drivers of this positive change could be a new product, competitive advantage, regulatory change or management change. We determine if the positive change is sustainable by reviewing the investment candidate’s long-term earnings potential, financial strength and quality of management. We confirm the timeliness of the investment by reviewing the security’s relative price strength, market sentiment and economic factors impacting the company.

A Disciplined, Forward-looking Approach to Growth Investing

We use a forward-looking growth strategy to security selection, combining fundamental analysis with the discipline and objectivity of quantitative analytics. Our proprietary model is based upon our philosophy of positive change, supported by sustainability/quality and timeliness measures. Using the latest technology to efficiently examine and narrow a broad universe of securities, plus an external research network developed over the last 25+ years, our portfolio managers and analysts apply their experience to identifying potential holdings meeting our buy criteria.

Security Selection Drives Portfolio Construction

Portfolio construction is determined by the strength and conviction in the company’s investment thesis, irrespective of industry or sector. As active managers, our clients’ portfolios are fully invested with minimal cash. Generally, in order for a new idea to be purchased, an existing holding must be sold. Each holding has to continue to earn its place in the portfolio.

Understanding Sources Of Risk In Relation to Potential Alpha 

To ensure client portfolios are positioned to capture alpha and to manage significant risk exposures, our investment team regularly monitors and evaluates the risk/reward characteristics of each holding and the total portfolio. Our process enables the portfolio managers to better understand the sources of stock specific and factor risk in the portfolio. It also allows the portfolio managers and analysts to confirm their level of conviction in those holdings generating the highest risk.

Commitment to Performance

We are committed to remaining a performance-driven investment firm specializing in active equity and convertibles strategies for a select number of institutional investors and sub-advisory clients. As part of our commitment to deliver value-added performance, we will restrict our asset growth in each capacity-limited product.

Copyright by Nicholas Investment Partners 2016. All rights reserved.