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Exhaustive research is the key to the Friess Associates’ investment approach.
More than two dozen research professionals conduct as many as 1,000 interviews each week with company managements, customers, competitors, and suppliers to gather insights on existing and potential holdings. Insights are shared in real time among all Friess Associates’ researchers through a proprietary database, which houses more than 25,000 industry contacts.
Investment Process
Ideal Investment
The ideal security for the Brandywine Blue Fund exhibits many of the following traits:
- Rapid growth
- Reasonable price-to-earnings ratios
- Likely to top consensus earnings estimates
- Specific catalyst likely to contribute to earnings ahead of consensus expectations
- Lesser-known and under-researched rather than a big-name industry leader
- At least three years of earnings history and $3 million in after-tax income
Portfolio Construction
The Friess Associates team’s goal is to outperform the indexes, not mimic them, so securities are added to the portfolio one company at a time without regard to market indexes.
Portfolio characteristics such as average market capitalizations and sector weightings are byproducts of the team’s company-by-company search for earnings strength. Each holding must earn its keep by enjoying more upside potential than available alternatives based on its fundamental outlook.
In constructing the Brandywine Blue Fund portfolio, fund management:
- Conducts active, bottom-up research without specific targets for sector representation
- Limits holdings to 2%-3% of assets at purchase
- Manages company-specific and liquidity risks by limiting individual holdings to 5% of assets
- Manages industry risk by limiting sub-sectors to less than 15% of assets
Sell Discipline
The investment team may sell a security when:
- It reaches a predetermined target price
- A company with more upside potential displaces it
- Company fundamentals deteriorate
- Wall Street becomes overly optimistic about its prospects
To invest in Brandywine Funds, or for more information, please visit www.brandywinefunds.com, or call Managers Investment Group at 800.368.4410.
Disclosure Investors should carefully consider the fund's investment objectives, risks, charges, and expenses before investing. For this and other information, please call 800.835.3879 or download a free prospectus. Read it carefully before investing or sending money.
There is no guarantee that these investment strategies will work under all market conditions, and each investor should evaluate their ability to invest for a long-term, especially during periods of downturns in the market.
The investment return and the principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.
Managers Distributors, Inc. provides support on a wholesale basis related to making the Brandywine Funds available through various intermediaries.
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