Virtus Silvant Focused Growth Fund

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Mutual Fund Equity Domestic Equity

Virtus Silvant Focused Growth Fund

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$ (as of )
Total Assets by Class
$524,948,273.56 (as of 12/02/2022)
Total Assets by Fund
$875,089,473.74 (as of 12/02/2022)
Morningstar Category
Large Growth

Portfolio Overview

Investment Overview

The Fund seeks to generate capital appreciation by investing in a concentrated portfolio of U.S. large-cap companies that exhibit strong business fundamentals and above-average growth potential. A disciplined investment process focuses on identifying positive fundamental trends, including earnings and revenue growth, improving cash flows, and increasing return on invested capital.

Effective July 25, 2022, this Fund's name and subadviser have changed.

Management Team

Investment Partner

Silvant Capital Management LLC

Silvant Capital Management is a growth equity boutique that leverages the passion and talents of a diverse, experienced group of investment professionals. Guided by their belief that growth companies can be found in every corner of the economy, Silvant strives to evaluate positive secular trends and disruptive products and services that can change the business landscape, identifying those companies best positioned to exceed investor expectations.

Learn more about Silvant Capital Management LLC

Investment Professionals

Michael Sansoterra

Michael A. Sansoterra

Chief Investment Officer, Managing Director, Senior Portfolio Manager

Industry start date: 1996
Start date as fund Portfolio Manager: 2022

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Sandeep Bhatia

Sandeep Bhatia, Ph.D., CFA

Managing Director, Senior Portfolio Manager

Industry start date: 2000
Start date as fund Portfolio Manager: 2022

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Brandi Allen

Brandi Allen

Managing Director, Portfolio Manager

Industry start date: 1997
Start date as fund Portfolio Manager: 2022

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Key Features

Growth as a Condition, Not a Category

Searches for large-cap growth opportunities across the market, including segments overlooked by many traditional growth managers

Extensive Fundamental Research

Bottom-up analysis strives to identify well-run businesses with positive investment characteristics and potential to grow earnings faster than peers

Focused on True Game Changers

Evaluates secular trends and disruptive products and services with potential to disrupt the business landscape and exceed investor expectations

Portfolio Characteristics


(as of 09/30/2022)
Average Weighted Market Cap (billions) $947.58
Median Market Cap (billions) $94.79
Trailing P/E Ex-Negative Earnings 30.18
Price-to-Cash Flow 22.32
Price-to-Book Value 8.62
3-Year Earnings Growth Rate 26.45

Top Holdings (% Fund)

(as of 09/30/2022)
Apple Inc
Microsoft Corp
 13.41% Inc
Alphabet, Inc.- Cl A
Alphabet, Inc.- Cl C
UnitedHealth Group Inc
Visa Inc
Eli Lilly & Co
Tesla Inc

Holdings are subject to change.

Sector Allocation (% Equity)

(as of 09/30/2022)
Information Technology
Consumer Discretionary
Health Care
Communication Services
Consumer Staples

Performance & Risk

Growth of $10,000 Investment

From to
This chart assumes an initial investment of $10,000 made on for Class ddd shares including any applicable sales charges. Performance assumes reinvestment of dividends and capital gain distributions.


As of
As of

Performance data quoted represents past results. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, so your shares, when redeemed, may be worth more or less than their original cost.

Sales Charge and Expenses

Risk Statistics3

(as of )
Fund Index
Std Dev

Risk Considerations

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. Price changes may be short- or long-term. Local, regional, or global events such as war (e.g., Russia's invasion of Ukraine), acts of terrorism, the spread of infectious illness (e.g., COVID-19 pandemic) or other public health issues, recessions, or other events could have a significant impact on the portfolio and its investments, including hampering the ability of the portfolio's manager(s) to invest the portfolio's assets as intended.
Issuer Risk: The portfolio will be affected by factors specific to the issuers of securities and other instruments in which the portfolio invests, including actual or perceived changes in the financial condition or business prospects of such issuers.
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 or medium-sized companies may enhance that risk.
Focused Investments: To the extent the portfolio focuses its investments on a limited number of issuers, sectors, industries or geographic regions, it may be subject to increased risk and volatility.
Prospectus: For additional information on risks, please see the fund's prospectus.


Market Review

U.S. equity markets continued their decline in the third quarter, despite a strong rally early in the period. The Federal Reserve (Fed) continued its aggressive fight against inflation with additional interest rate hikes and signaled that monetary tightening would continue until inflation approaches 2%. The Fed’s effort to slow the economy appeared to be working, with U.S. gross domestic product shrinking for a second consecutive quarter. Global economic weakness and elevated geopolitical risks added to the macro pressures, all of which were putting U.S. equities on track to deliver their worst year in decades. Robust labor and wage gains, though easing, remained the bright spot in the economy.     

While growth equities were broadly down in the quarter, they tended to outperform the wider market. The Russell 1000® Growth Index fell 3.60%, with the largest sector losses in real estate (-11.47%), communication services (-11.18%), and consumer staples (-6.83%). Energy (+4.31%) and consumer discretionary (+6.12%) delivered the only sector gains.


The Virtus Silvant Focused Growth Fund declined 4.91% (Class INST) in the third quarter, while the Russell 1000 Growth Index declined 3.60%. Stock selection in information technology, industrials, and consumer staples weighed the most on performance. Stock selection in consumer discretionary added the most to returns.

Tesla and Mastercard were among the strongest stock contributors.

  • Electric vehicle manufacturer Tesla outperformed on strong earnings. The quarter was not without challenges, as the company was pressured by production limitations due to COVID-related lockdowns in China. Overall, however, the company still expects to grow global production for the rest of the year. We held steady with our position, as the company continues to offer favorable operating leverage and the enviable position as the absolute leader in electric vehicle market, despite heavy competition.
  • Payment-processing firm Mastercard delivered higher-than-expected earnings and revenue on strong consumer spending. Shares also benefited from cross-border volume gains. We sold the position and replaced it with competitor Visa.
  • Additional top contributors included, Apple, and Microchip Technology.

NVIDIA and Microsoft were among the largest stock detractors.

  • Shares of semiconductor maker NVIDIA underperformed again this quarter after reporting lower-than-expected earnings and revenue driven by slowdowns in its gaming and professional visualization segments. While the company’s data-center business is also experiencing softer gains, its automotive segment continues to grow north of 60% with a considerable backlog. We continued to hold the position as our longer-term outlook for the stock remains favorable.
  • Technology giant Microsoft lagged on soft earnings pressured by the strong dollar, production slowdowns, and decelerating personal computer demand. We held steady with the stock for now. The company has reiterated a more upbeat full-year outlook, despite the economic climate, forecasting double-digit revenue and operating income growth.   
  • Additional bottom contributors included Visa, Alphabet, and Estee Lauder Companies.

Portfolio Changes

Silvant became the Fund’s subadviser on July 25, 2022. Since then, there were no new additions or exits during the remaining period in the quarter.


We remain cautious in the current economic climate. Equity markets are likely to stay volatile as the Fed continues to tighten financial conditions. Although valuations based on trailing earnings have started to look more attractive amid the year-to-date decline in equities, the upcoming earnings season may result in lower forward-looking earnings guidance from companies. In our view, the market is pricing in more negative earnings sentiment. However, broadly speaking, companies’ outlooks have probably not yet come down enough, given how long the current economic headwinds could persist.

We believe the portfolio is well positioned despite the challenging environment. For example, while many of the companies that we own have started to experience generally lighter sales volumes, they have largely been able to offset any slowdown with notably better pricing. Our focus remains on holding growth businesses that are better at executing and competing than their peers. These are the types of stocks, in our view, that should be more resilient in the current cycle and also be well suited to outperform when the economic tide finally turns. The key at this point is to keep focusing on fundamentals while being patient.

The commentary is the opinion of the subadviser. This material has been prepared using sources of information generally believed to be reliable; however, its accuracy is not guaranteed. Opinions represented are subject to change and should not be considered investment advice or an offer of securities.

Related Literature

Marketing Materials

Virtus Silvant Focused Growth Fund Fact Sheet - R6
Virtus Silvant Focused Growth Fund Fact Sheet - INST
Virtus Silvant Focused Growth Fund Fact Sheet - A

Financial Materials

Virtus Investment Trust Statutory Prospectus
Virtus Silvant Focused Growth Fund Summary Prospectus
Virtus Investment Trust SAI
Virtus Investment Trust Annual Report
Virtus Investment Trust Semiannual Report
Virtus Silvant Focused Growth Fund Information Statement


Virtus Silvant Focused Growth Fund Monthly Holdings
Virtus Silvant Focused Growth Fund Top Holdings
Virtus Silvant Focused Growth Fund Holdings Fiscal Q1
Virtus AllianzGI Focused Growth Fund Holdings Fiscal Q3

Investors should carefully consider the investment objectives, risks, charges and expenses of any Virtus Mutual Fund before investing. The prospectus and summary prospectus contains this and other information about the fund. Please contact your financial representative, call 1-800-243-4361 to obtain a current prospectus and/or summary prospectus. You should read the prospectus and/or summary prospectus carefully before you invest or send money.

Performance data quoted represents past results. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, so your shares, when redeemed, may be worth more or less than their original cost.

Average annual total return is the annual compound return for the indicated period. It reflects the change in share price and the reinvestment of all dividends and capital gains. NAV returns do not include the effect of any applicable sales charges. POP and w/CDSC returns include the effect of maximum applicable sales charges.

Returns for periods of less than one year are cumulative total returns.

1 Yields/Distributions: 30-day SEC Yield is a standardized yield calculated according to a formula set by the SEC, and is subject to change. 30-day SEC Yield (unsubsidized) is the 30-day SEC Yield without the effect of applicable expense waivers. Distribution Rate is calculated by (a) annualizing the latest income distribution for fixed income funds or funds less than 1 year old, or (b) summing all income distributions over the preceding 12 months for all other funds, and dividing by the NAV on the last business date of the period, unless otherwise indicated. The Distribution Rate may be comprised of ordinary income, net realized capital gains and returns of capital.

2 Distribution History: Distributions are represented on a cash basis and may be reclassified at year end for tax purposes. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. STCG: Short Term Capital Gain, LTCG: Long Term Capital Gain

3 Risk Statistics: R2 is a statistical measure that represents the percentage of a fund or security's movements that can be explained by movements in a benchmark index. Beta is a quantitative measure of the volatility of a given portfolio to the overall market. Alpha is a risk adjusted measure of an investment's excess return relative to a benchmark. A positive Alpha indicates that the investment produced a return greater than expected for the risk (as measured by Beta) taken. Standard Deviation measures variability of returns around the average return for an investment fund. Higher standard deviation suggests greater risk. Risk Statistics are calculated using 36 monthly returns.

4 Characteristics: For Equity Funds: Avg. Weighted Market Cap (bn): The sum of each security's weight within the fund (or index) multiplied by the security's market capitalization. Trailing P/E Ex-Negative Earnings: Per-share stock price divided by the latest 12-months Earnings per Share; Price/Cash Flow: Per-share stock price divided by the per-share operating cash flow; Price/Book: Per-share stock price divided by the latest 12-month per-share Book Value; 3-Year EPS Growth Rate: Average of earnings per share growth for latest 3-year period. The 3-Year EPS Growth Rate is not a forecast of the fund's performance.

4 Characteristics: For Fixed Income Funds: Effective Duration represents the interest rate sensitivity of a fixed income fund. For example, if a fund's effective duration is five years, a 1% increase in interest rates would result in a 5% decline in the fund's price. Similarly, a 1% decline in interest rates would result in a 5% gain in the fund's price.

Morningstar Disclosures:
The Morningstar Rating for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads.

© Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.