Mid Cap Growth

Eagle's Mid Cap Growth program employs a rigorous bottom-up stock selection technique designed to capitalize on profitable mid-size companies.

Affiliated Mutual Fund

Investment Process
Investment
Team
Performance
Literature

The Eagle Mid Cap Growth program seeks securities of companies that exhibit the following criteria:

Companies that offer rapid growth at reasonable valuations

  • Screen for accelerating earnings growth
  • Screen for insider buying
  • Strong management with insider ownership (greater than 10 percent)
  • High or expanding earnings growth (target 20 percent)
  • High or expanding ROE (greater than 10 percent)
  • Price-to-earnings at or below earnings growth rate

Qualitative analysis

  • Buy- and sell-side contacts
  • Industry/company contacts
  • Investment conferences
  • Company visits
  • Trade journals
  • SEC filings

Risk management/sell discipline

  • Risk management
    • Buy reasonably priced stocks
    • Diversify sectors
    • Trim holdings if they become more than 5 percent of portfolio
  • Stay with winners
  • Proactive in anticipating problems
    • Proprietary relative strength measure to anticipate potential problems
    • Quarterly updates
    • Monitor earnings quality
  • If a problem is detected, anticipate further problem. Evaluate the stock again as if deciding on a new position