Purpose

The Verus U.S. Focus Growth strategy seeks to achieve long-term growth by building a concentrated portfolio of outstanding businesses with competitive advantages and the potential for sustained superior growth.

​

Investment Objectives

1. Concentrated Portfolio – “High Active Share”

• Portfolios are constructed with a select group of high-quality companies characterized by strong balance sheets; abundant free cash flow; strong ROW (>20%); stable to improving margins; and real, organic revenue growth.

• Best Ideas Portfolio – impartial to index sector weightings and index position weightings.

• The Focus Growth strategy invests in ~ 20 companies

• Long Holding / Compounding Period – “Time Arbitrage”

2. Long-term focus on company fundamentals and competitive advantages.

• Portfolio returns are generated through the compound earnings growth of competitive advantaged companies owned for many years – Share prices follow earnings growth.

• Conviction: the flagship Focus Growth portfolio has invested in a total of ~ 100 companies since inception.

• Average holding period is approximately five years.

3. Risk Management – “Don’t lose mentality”

• Only invest in financially superior/competitively advantaged businesses – margin of Safety.

• Strict and disciplined focus on long-term preservation of capital.

• Portfolio construction parameters include position size limits and sector weight limits.

• Currency, policy, and political risks are considered in general and specifically with regard to investing outside of the United States.

4. Weighing Machine vs. Voting Machine

• No market predictions – fully invested at all times.

• Unemotional selling – an absolute return mentality.

5. Outcome Orientation

• Absolute return mentality seeking double-digit returns with lower levels of risk.

• More than 28 years of evidenced success through consistent application of the Polen Capital investment process.