Morningstar Rates Two Granahan Strategies In The Top Ten

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Two US small cap equity strategies managed by Granahan Investment Management, Inc. (GIM) were highlighted as top-performing US growth-equity strategies for the five years ending on December 31, 2013 in the February 17th issue of Pensions & Investments magazine. The magazine utilizes performance data provided and vetted by Morningstar Inc.

“The performance of each GIM strategy reflects the experience of the team and a disciplined stock selection process that emphasizes reducing downside risk." Jane M. White, President & CEO

The Small Cap Focused Growth strategy is managed by GIM Portfolio Manager Drew Beja. The small cap equity strategy has been included in the top-performer list several times in the past two years, and was most recently recognized for both its one-year and five-year performance through December 31, 2013, utilizing performance data obtained from the Morningstar Inc investment database. The Focused Growth portfolio contains small and mid-sized US stocks representing various industries.

“We are in the midst of an extraordinary time. With advances in areas such as ubiquitous mobile computing, social media, cloud computing, electric vehicles, and 3D printing, there are many innovative small-to-mid-cap companies with large, open-ended opportunities that are positioned to sustain growth for many years to come. Our mission is to identify such companies, follow them closely, get to know them well, and use our disciplined valuation methodology to guide us to own their stocks when risk/reward is attractive,” says Mr. Beja.

The GIM Small Cap Discoveries strategy is managed by Gary Hatton, co-founder and Chief Investment Officer at GIM. The product is a diversified portfolio of publicly traded US small and micro-cap stocks, and was named one of the top ten performing US growth equity strategies for the 5-year period ending December 31, 2013. The strategy has also received accolades as the sub-adviser for the Vanguard US Discoveries Fund for non-US investors. As an investor, Mr. Hatton has deep expertise in the healthcare and biotech sectors.

“There are opportunities for earnings growth in all areas of the market. It is our job at GIM to understand and capitalize on new emerging technologies as well as on the stocks of companies that have may have disappointed investors in the past but have strong earnings growth potential going forward,” notes Hatton.

“It is our goal to provide clients with consistent long-term performance through strong stock selection. The five-year performance records for the Small Cap Discoveries and Small Cap Focused Growth strategies reflect the experience of the team and the disciplined underlying investment process, a process that emphasizes reducing downside risk to protect our clients’ capital,” notes Jane White, President and CEO.

GIM uses bottom-up research to find well-managed companies that have large or open-ended opportunities for their products or services. This research is augmented by rigorous stock analysis to determine when to hold these well-positioned companies.

“Small companies in the US are doing very well in this economic environment, as they are the problem solvers of the economy, providing innovative products and services that enable increased productivity and lower costs for companies and consumers around the globe,” Ms. White adds.

About Granahan Investment Management, Inc.

Granahan Investment Management, Inc. is an employee-owned firm that was founded in 1985. The Waltham, Massachusetts-based firm provides institutions and family offices with quality investment management services in the smaller cap area of the market. The firm currently has $4 billion in assets under management.

All GIM products are available directly to institutional investors. The Small Cap Discoveries strategy is also offered through a commingled fund for smaller US institutions and qualified individuals, and until its recent closing, the strategy was available to off-shore investors in the highly ranked Vanguard US Discoveries Fund. The Small Cap Focused Growth strategy will soon be available to non-US institutional investors through a fund scheduled to be launched in April 2014.

For more information, please contact Karen Agnew at 781-890-4412, kagnew(at)granahan(dot)com

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Karen Agnew
Granahan Investment Management

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