U.S. Small Cap Growth Equity

The strategy seeks to outperform the Russell 2000 Growth index over a full market cycle.*

Complete details, including composite calendar-year performance (%)

Q4 | 2020 Quarterly Review (PDF)

Investment approach

  • 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 index

Russell 2000 Growth Index

AUM ($M) Strategy

827

AUM ($M) Composite

827

Inception date

1/31/00

Typical range of portfolio holdings

60–80

Related Putnam mutual fund

Small 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.


Portfolio managers

Portfolio Manager


Performance and holdings as of 12/31/20

Composite performance (%)

Annualized Gross Net Index
Q4 23.06 22.81 29.61
YTD 49.53 48.33 34.63
1 year 49.53 48.33 34.63
3 year 27.18 26.16 16.20
Since inception -- -- --

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 (%)

Company % Industry
R1 RCM 2.3 Health care providers and services
Cable One 2.2 Media
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
Total 19

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.

Complete details, including composite calendar-year performance (%)

Q4 | 2020 Quarterly Review (PDF)

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.

To learn more about our offerings, please call our Client Engagement Center (CEC) at 1-800-354-4000.

Model-based managed accounts programs: Putnam Investments and its affiliates, which include The Putnam Advisory Company, LLC and Putnam Investment Management, LLC (“Putnam”), is limited to providing non-discretionary investment management services through Separately Managed Account (SMA) and Unified Managed Account (UMA) programs or other third-party platforms (collectively, the “Financial Intermediary”), where Putnam generally provides ongoing investment recommendations through one or more “model” portfolios, and the Financial Intermediary, rather than Putnam, makes investment decisions and executes trades on behalf of its underlying clients. The Financial Intermediary decides in its discretion whether to make any changes to the model that Putnam recommends, and is also solely responsible for determining the suitability of the strategy and investments for each client that participates. This information is not personalized investment advice or an investment recommendation by Putnam, and is intended for use only by a Financial Intermediary in connection with its management of its own clients’ accounts. Putnam does not have investment discretion over, or place trade orders for, any portfolio or account derived from this information. Performance of any portfolio or account derived from this information may vary materially from the performance shown herein. There is no guarantee that any investment strategy illustrated will be successful or achieve any particular level of results. Information and other marketing materials created by Putnam concerning a model portfolio strategy — including holdings, performance and other characteristics — may not be indicative of a client’s actual experience from an account managed in accordance with the strategy. This material has been created by Putnam and the information included herein has not been verified by a Financial Intermediary and may materially differ from information provided by a Financial Intermediary. Putnam is not responsible for overseeing the provision of services by a Financial Intermediary and cannot assure the quality of its services.