Investment Philosophy

Investment Philosophy

Kalmar believes that there is a low risk/high reward anomaly offered by the equity market in stocks of solid, well managed, rapidly growing smaller companies that for varieties of reasons have not made the radar screen of most typical growth investors. Because these companies are relatively "invisible" institutionally, they are often more inefficiently valued. With creative in-house research, such successful companies can be discovered and bought at undervalued levels, and then owned for the longer term to benefit from both their vigorous business value growth and their potential revaluation upward as broader investor discovery takes place. Since the universe of smaller companies is very large by number, it requires diligent research and thorough business analysis to isolate superior growth companies, as well as specialized portfolio management skills to invest in them successfully. Kalmar seeks high value-added returns capitalizing on this low risk/high reward small cap opportunity. We call our investment style:

"Growth-with-Value"

A Conservative, High Value-Added Approach to Small and SMid Company Investing

Kalmar's "Growth-with-Value" investment style is a classic fundamental approach that integrates the best elements of creative smaller growth company investing with a strong value-seeking discipline in a consciously longer term context. This purposeful integration of positive but often separately found ingredients differentiates Kalmar's investment approach and together with our team management and intense, hands-on original research has led to high returns for our clients.

A preponderant portion of the investments are in small cap stocks. Investments in small cap stocks involve greater risks than investments in larger, more established companies, are more volatile, and may suffer significant losses. Further, the market for small cap stocks is generally less liquid than the markets for larger stocks, which can contribute to increased price volatility of small cap stocks. Past performance is not necessarily an indication of future results.

Investment Strategy