• Bottom-up fundamental approach to investing
• Long-term investment horizon - not a momentum player
• Growth at a reasonable price investor
• Extremely focused on style consistency
• Disciplined application of investment philosophy
• Always fully invested, no market timing

Investment Process
Beginning with a universe of approximately 3,000 small-cap companies having a market capitalization between $100 million and $1.5 billion, RBC selects those profitable, high-quality, small-cap growth companies selling at reasonable valuations that are likely to outperform the market over the long-term. We take a bottom-up fundamental approach to investing and have a long-term investment horizon. We are a growth at a reasonable price investor, not a momentum player.

The portfolio of small cap growth stocks consists of high-quality, profitable, financially sound growth companies that generally display the following characteristics at the time of purchase: 15-20% + long-term revenue growth, 15-20% + long-term earnings growth, consistency of financial results, high sales and earnings growth rates relative to industry peers, high margins and return on equity relative to industry peers, reasonable price to earnings and price to sales ratios, generating operating profits and high quality of earnings, and unique market niche.

The portfolio is well diversified, holding 60-75 names and is designed to have broad industry and sector exposure, with no large sector bets versus the Russell 2000 Growth Index. Maximum exposure to any one company will be 2.0% at cost and 4.5% at market. Portfolio turnover is quite low, approximately 30% annual average since product inception. We are always fully invested and are not market timers.