Focused Growth International Equity

Investment Philosophy

WCM believes that attractive returns can only be achieved by structuring portfolios distinct from the market indices. As a result our portfolio is limited to 20-30 companies, concentrating on our best ideas. Our focus is on industry-leading non-US organizations, led by visionary management teams with sound business strategies. These companies often dominate their industry and are likely to continue that domination well into the future. Thus, when selecting equity investments, our minimum time horizon is 3-5 years.

The Investment Process

WCM's Investment Strategy Group (ISG), consisting of four senior investment professionals, establishes portfolio guidelines for sector and industry emphasis and develops the model portfolio. The ISG analyzes the major trends in the global economy in order to identify those economic sectors and industries that are most likely to benefit. Typical themes include demographics, global commerce, outsourcing, the growing global middle class and the proliferation of technology. A portfolio strategy is then developed that will best capitalize on the expected growth. All buy and sell decisions are made by the ISG.

WCM utilizes independent “grass roots” research sources for analysis of individual companies and trends, not Wall Street reports. Investment ideas are generated from a number of sources including independent research firms, industry publications, financial media, and news events.

Portfolio Construction

WCM seeks non-US domiciled quality growth businesses with superior growth prospects, high returns on invested capital and low or no debt. It also requires each company to maintain a durable competitive advantage, what management terms an economic moat. The ISG strongly considers qualitative elements such as corporate culture and the strength, quality and trustworthiness of management. WCM is sensitive to valuation and will avoid companies with limited or spotty histories. The ISG concentrates its efforts on large established multinationals, with a primary emphasis in the large cap space. Unlike other international growth managers, WCM generally passes on businesses in leveraged, non-growth sectors such as energy, basic materials, utilities or financials. Instead, WCM focuses its attention on conventional growth sectors like technology, consumer discretionary & staples and healthcare.