Principal Dynamic Growth

Specializes in the management of U.S. growth equities. Uses a bottom-up, growth-oriented approach to find companies that we believe are getting stronger because of positive momentum or positive surprise.

Why Principal Dynamic Growth

MOMENTUM AND SURPRISE
  • Invest in companies getting stronger and exceeding investor expectations
  • Experienced in distilling fundamental drivers of a company into three to five key essential story elements (ESEs)
  • Evidence-based decision making – continuous monitoring of fundamental change versus expectations drives timely, unemotional, and repeatable investment process
THEMATIC AND TECHNICAL OVERLAY
  • Themes share common sources of positive surprise and are additive to traditional GICS sector diversification approach
  • Portfolio technical analysis confirms conviction, identifies short-term dislocations, and exploits alpha generation opportunities
REPEATABLE OUTCOMES
  • Quarterly report cards of portfolio holdings validate persistent absolute and relative positive momentum and positive surprise
  • Consistent positive EPS revisions relative to the investable universe

Investment process

Portfolios are managed using a bottom-up fundamental process focused on positive momentum and positive surprise. Our investment philosophy is based on what we believe are the most important fundamental leading indicators. Confidence, magnitude of surprise, and sustainability are key components in our decision-making process. We use a prudent macro-overlay and proprietary monitor to assess the direction of the economy and inflation, which influences our long-term process.

Investment process diagram

Featured strategies

Our growth strategies strive to outperform their benchmark over a three-to-five-year market cycle.

Mid Cap Growth Fact Sheet (PDF)

Small-Mid Cap Growth Fact Sheet (PDF)

Small Cap Growth Fact Sheet (PDF)