Mid Cap Growth
Investors whose wealth management strategies call for mid-cap growth stocks can rely on Banc Star Financial’s one-of-a-kind rigorous stock identification and selection technique. Our research specialists combine quantitative and qualitative analysis to identify mid-size companies that have solid prospects for accelerating earnings growth. In every case, we maintain a goal of creating portfolios that consistently outperform standard mid cap market indexes.
Our wealth managers work with a co-equal research team in an environment that promotes performance and merit over personality. They maintain their edge with internal competition that drives every team member to improve their mid-cap stock selection and performance.
The optimum mid cap growth investment prospects are those companies that are poised to elevate their status into the group of large cap companies. Our research methodology locates those companies that represent the strongest potential for acceleration and growth in earnings that will take those companies to the next level. Once those companies are identified, our managers update their prospects regularly to incorporate industry growth and challenges and enhancements to their greater potential. We strive to identify problems before they erode value, and we recommend periodic portfolio rebalancing to avoid excess exposure to any one company or small group of mid-cap equity assets.
Small Cap Growth
Small cap companies often have the greatest potential for significant growth. That potential is offset by outsized risks that can erode growth more rapidly than in mid or large cap companies. Banc Star Financial’s wealth managers and researchers employ a rigorous bottom-up small cap stock selection technique that focuses on a company’s management team and that team’s ability to sustain and grow companies that have more limited cash and capital reserves.
Because risk is an immutable component of small cap investments, our advisors adopt a proactive risk management strategy for small cap stocks. We update our internal profiles for the small cap companies that we identify as having strong investment potential at least monthly. We establish automatic monitors that flag potential problems and compare small cap prospects against similar companies and companies that have achieved growth beyond the small cap sector.
Small cap growth stock investments benefit from a more nimble analytical approach. Our recommendations in this sector often reflect more active trading into and out of opportunities as conditions may require.
SMID Cap Strategy
Investment advisors have coalesced around an intermediate category of equity investments that combine both small and mid cap companies under the “SMID” moniker. This hybrid category benefits from a modified approach to research and analysis that looks for seasoned management teams, quality product and service offerings, and untapped value that is driven by both internal potential and external influences.
As with all of our recommendations, SMID cap strategies work well with a disciplined approach that drives investment decisions according to variables other than emotions and market exuberance. The optimum SMID investments are priced at or below book value. They show a history of stable growth and earnings with no dislocations in the trajectories of those characteristics.
We watch all of the SMID companies that our research identifies for sustainability, cash flow, high internal rates of return, consistently healthy balance sheets, and realistic price earning ratios.
