The Driehaus US Growth Equities team focuses on investing in US-listed equities of public companies with market capitalizations between $100 million and $15 billion, through the Driehaus Micro Cap Growth, Driehaus Small Cap Growth and Driehaus Small/Mid Cap Growth strategies. The strategies provide investors with high active share portfolios of companies experiencing positive fundamental change in addition to exposure to positive growth inflections, earnings surprises and earnings revisions, factors that are positively correlated to alpha generation. The team is led by Jeff James who began his portfolio management career at Driehaus in 1998. He is supported by six analysts that combined have over 50 years of Driehaus research experience.
Our institutional sales team will be pleased to address questions and requests related to separately managed accounts and/or institutional commingled vehicles that employ our investment strategies.Ask Us!
The strategy seeks to outperform the Russell 2000® Growth Index over full market cycles.
The strategy seeks to outperform the Russell 2500® Growth Index over full market cycles.
The team employs a growth-oriented investment philosophy focusing on identifying company-specific growth inflection points and exploiting associated marketplace inefficiencies. Core to the philosophy are the beliefs that: earnings are the primary driver of equity prices over time, market expectations tend to be ‘anchored’ to historical information and points of inflection therefore introduce dislocations between market expectations and fundamentals which generate significant alpha capture opportunities. The team combines fundamental, macro/sector/industry and behavioral analysis in its investment process together with a nimble/active investment approach to quickly identify inefficiencies and generate a portfolio, which uniquely seeks to achieve superior aggregate growth rates as well as superior risk characteristics.
US real GDP growth averaged a robust 3% for the six quarters from the second quarter of 2017 to the third quarter of 2018, but economic conditions clearly decelerated and softened in the December quarter resulting in a dramatic shift in investor sentiment over the past four months. Yet other factors suggest a recession is not yet around the corner.
The December quarter was very difficult for US equities as the market experienced one of the largest fourth quarter declines in market history. Near and intermediate term, the outlook for US equities will depend on the key items that have been the major causes for the market’s sharp decline: the Federal Open Market Committee (FOMC)’s monetary policy, the slope of the yield curve, US/China trade policy, stabilization of the US and global economies and the health of corporate earnings.