Nicholas Investment Partners

Capabilities

We specialize in dynamically growing small- and mid-cap companies offering different portfolios designed to suit a variety of investor needs.

  • - Over 30 years of experience investing in dynamic growth companies whose revenues and earnings are catalyzed by positive change and where the resulting acceleration of growth is sustainable and the investment is timely
  • - Specialists in small- to mid-cap companies
  • - Invest in both equities and convertibles
  • - Edge comes from combining global fundamental equity and credit research with objectivity and efficiency of quantitative tools

 

One team. One Philosophy. Different portfolios designed to suit a variety of investor needs

 

Convertible Arbitrage

An absolute return strategy that typically pairs a long convertible bond position with a corresponding short position on the underlying company’s equity. It uses an actively managed hedge strategy to seek a consistent positive rate of return with lower volatility than equities. In general, it expects to deliver mid-to-high single digit returns in normal market environments, over a market cycle, typically five years.

Invests in US dollar-denominated convertible bonds and preferred stocks. Actively hedges by typically shorting the equity exposure to take advantage of fundamentals and volatility. Convertible Arbitrage portfolios are fully invested and well diversified portfolios with approximately 50–100 securities across a wide range of industries.

Convertibles

A strategy that seeks to maximize total returns while protecting against downside risk. It combines fundamental equity research with traditional credit analysis to identify convertible bonds with an attractive asymmetrical risk/reward profile, those convertible securities that participate in most of the upside and less of the downside performance of the underlying equity.

Invests in US dollar-denominated convertible bonds and preferred stock. Convertible portfolios are fully invested and well-diversified with approximately 50–75 securities across a wide range of industries.

Concentrated US Equity

A focused all-cap strategy that seeks to deliver long-term capital appreciation through high-conviction investing. The strategy seeks to outperform broad-based market benchmarks. The strategy capitalizes on a disciplined and forward-looking investment process to invest in successful, growing companies—those that manage change advantageously and are poised to exceed expectations.

Invests in equity securities primarily traded on US exchanges with up to 25% of the portfolio in ADRs and non-US securities listed on US or local exchanges. Concentrated US Equity portfolios are actively managed with 20–50 securities selected across all market capitalizations.

US Growth Equity

Offers investors attractive opportunities to diversify and capture the appreciation potential in one of the best performing segments of US equity markets over the long-term. Mid-cap companies typically enjoy the growth potential of smaller companies with greater global market penetration, more experienced management and stronger financial resources. The strategy capitalizes on a disciplined and forward-looking investment process to invest in successful, growing companies—those that manage change advantageously and are poised to exceed expectations.

Invests in equity securities traded on US exchanges generally with market capitalizations in the range of the Russell Midcap Growth Index at the time of purchase. US Growth Equity portfolios are fully invested and well-diversified portfolios with approximately 75–100 holdings on average across a wide range of industries.

US Small Cap

Offers investors attractive opportunities for capital appreciation and diversification within this less-widely-followed market segment. Small-cap companies typically demonstrate higher revenue and earnings growth potential than larger companies. US Small Cap capitalizes on a disciplined and forward-looking investment process to invest in successful, growing companies—those that manage change advantageously and are poised to exceed expectations.

Invests in companies listed on US exchanges generally within the market capitalization range of the Russell 2000 Growth Index. US Small Cap portfolios are fully invested and well diversified portfolios with approximately 90–110 holdings on average across a wide range of industries.

Healthcare Opportunities

An actively managed, high-conviction strategy investing in healthcare-related companies that we believe manage change advantageously, have sustainable company fundamentals and are poised to exceed earnings and/or revenue growth expectations.

Invests in companies listed on US exchanges across all market capitalizations. Healthcare Opportunities portfolios are fully invested with industry weights a residual of the stock selection process. It is comprised of approximately 40–75 holdings in healthcare related industries.

Convertibles Plus

A levered strategy that seeks to maximize total returns while protecting against downside risk. It combines fundamental equity research with traditional credit analysis and seeks to identify convertible bonds with an attractive asymmetrical risk/reward profile, those convertible securities that participate in most of the upside and less of the downside performance of the underlying equity.

Invests in US dollar-denominated convertible bonds and preferred stock. Convertible Plus portfolios are fully invested and well-diversified with approximately 50–75 securities across a wide range of industries and are typically leveraged in the range of 1.0–2.5x.

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