KAR Small Cap Growth SMA

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KAR Small Cap Growth SMA

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Portfolio Overview

Investment Objective

  • To generate attractive risk-adjusted long-term returns by investing in the stocks of U.S. small-cap growth companies with durable competitive advantages, excellent management, lower financial risk, and strong growth trajectories
  • To identify businesses that are differentiated by above-average returns on capital trading at attractive valuations

Investment Philosophy

We believe that purchasing high-quality businesses with competitive protections at attractive valuations will achieve excess returns over a complete market cycle.

Investment Partner

Kayne Anderson Rudnick Investment Management, LLC

Kayne Anderson Rudnick believes that superior risk-adjusted returns may be achieved through investment in high-quality companies with market dominance, excellent management, financial strength, and consistent growth, purchased at reasonable prices.


Learn more about Kayne Anderson Rudnick Investment Management, LLC

Investment Professionals

Todd Beiley

Todd Beiley, CFA

Head of Research, Portfolio Manager, and Senior Research Analyst

Industry start date: 1999
Start date as fund Portfolio Manager: 1998

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Jon Christensen

Jon Christensen, CFA

Portfolio Manager and Senior Research Analyst

Industry start date: 1995
Start date as fund Portfolio Manager: 1998

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Additional Resources

Five Reasons to Take Stock of Small Caps
KAR Small Cap Growth SMA Portfolio Review

Risk Considerations

Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small, medium, or large-sized companies may enhance that risk.
Foreign Investing: Investing in foreign securities subjects the portfolio to additional risks such as increased volatility; currency fluctuations; less liquidity; less publicly available information about the foreign investment; and political, regulatory, economic, and market risk.
Sector Focused Investing: Events negatively affecting a particular industry or market sector in which the portfolio focuses its investments may cause the value of the portfolio to decrease.
Limited Number of Investments: Because the portfolio has a limited number of securities, it may be more susceptible to factors adversely affecting its securities than a portfolio with a greater number of securities.
Market Volatility: The value of the securities in the portfolio may go up or down in response to the prospects of individual companies and/or general economic conditions. Local, regional, or global events such as war or military conflict, terrorism, pandemic, or recession could impact the portfolio, including hampering the ability of the portfolio's manager(s) to invest its assets as intended.