U.S. Small Cap Growth Equity
- The strategy seeks to build a portfolio that offers above-average growth with a focus on quality and stability
- We look for mispriced growth in three main areas of the market: high-quality growth, emerging growth, and cyclical growth
- Portfolio manager with over 20 years of investment experience leverages extensive resources across the Putnam Equity Research team
Benchmark indexRussell 2000 Growth Index
AUM ($M) Strategy827
AUM ($M) Composite827
Typical range of portfolio holdings60–80
Related Putnam mutual fundSmall Cap Growth Fund
*No assurance can be given that the investment objective will be achieved or that an investor will receive a return of all or part of his or her investment. Actual results could be materially different from the stated goals. Investors should carefully consider the risk involved before deciding to invest. As with any investment, there is a potential for profit as well as the possibility of loss. Portfolio targets are subject to change.
Performance and holdings as of 12/31/20
Composite performance (%)
Past performance is not a guarantee of future results. An investment in this strategy can lose value. Returns are stated in U.S. dollars and include the reinvestment of dividends and interest. Returns less than one year are not annualized. Most recent quarter-end performance is preliminary. Returns are subject to change. Portfolio characteristics are for a representative account and are shown for illustrative purposes only. Portfolio characteristics of individual accounts managed to a model portfolio strategy may differ as a result of account size, client-imposed investment restrictions, the timing of client investments, market, economic and individual company considerations, and other factors. The inclusion of holdings information should not be interpreted as a recommendation to buy or sell or hold any security. The securities identified do not represent all the securities purchased, sold, or recommended for client accounts. It should not be assumed that an investment in the securities identified was or will be profitable. Holdings are subject to change.
Top 10 portfolio holdings (%)
|R1 RCM||2.3||Health care providers and services|
|Entegris||1.9||Semiconductors and semiconductor equipment|
|Hamilton Lane||1.9||Capital markets|
|Inmode||1.9||Health care equipment and supplies|
|Medpace Holdings||1.8||Life sciences tools and services|
|Five Below||1.8||Specialty retail|
|Adapthealth||1.8||Health care providers and services|
|Mercury Systems||1.7||Aerospace and defense|
|Repligen||1.7||Life sciences tools and services|
Performance commentary as of 12/31/20
During the fourth quarter the portfolio underperformed its benchmark, the Russell 2000 Growth Index. Stock selection drove the entirety of the relative performance while sector allocations were modestly positive.
Selections in health care drove weakness, followed by names held in industrials and financials.
Avoidance of poor performing names and underweight allocations in utilities and materials helped offset some of the relative weakness.
Performance commentary is not intended to be relied upon as a forecast or as research, or investment advice, and is not a recommendation, offer, or solicitation to buy or sell any securities or to adopt any investment strategy. It should not be assumed that an investment in any security mentioned was or will be profitable. As with any investment, there is a potential for profit as well as the possibility of loss. Past performance is no guarantee of future results.
The Russell 2000 Growth Index is an unmanaged index of those companies in the small-cap Russell Index chosen for their growth orientation. Frank Russell Company is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. You cannot invest directly in an index.
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