Investment Style

Century's primary focus for separate accounts is Small Cap Growth (SCG) and our SMID Growth strategy. Our focus for both strategies is on  service-based companies with Return on Equity (ROE) and Book Value Growth greater than 15%. The Benchmark for SCG is the Russell 2000 Growth index. The R2000 is the secondary benchmark. The benchmark for SMID Growth is the Russell 2500 growth, the Russell 2500 or the Wilshire 4500 Index.

Most consultants view our investment approach as “Small Cap GARP” (Growth at a Reasonable Price). This is in part due to the fact that we focus on service-based quality companies with earnings from recurring revenue sources. This has caused our emphasis to be in four specific sectors: Consumer Discretionary, Health Care, Financial Services and Technology.

Century is not an index-hugger, i.e. our tracking error tends to be high and R-Square is lower than more conventional benchmark focused small cap growth managers. As a result, using returns based style analysis to evaluate Century is not a good predictor of investment style. A recent holdings based style analysis placed our small cap portfolios closest to the Russell 2000 Growth index excluding all companies without earnings.

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