Disruptive Innovation Creates New Market Opportunities
Universe: Publicly listed companies, largely in North America, with growth characteristics, i.e., minimum target revenue growth of 10% or higher.
Competitive Moat: Portfolio companies continuously innovate to gain market share and displace established, market leading firms, products and alliances.
Sustainable Secular Growth: Moat-worthy companies on the right side of secular trends experience higher growth rates versus their peers and industries.
Valuation: Capital allocated to moat-worthy, disruptive growth companies at reasonable prices should appreciate with the growth of underlying business.
How We Differ: We are focused on long-term earnings trajectory versus measuring success from near-term cash flows. This leads to better success in companies with large addressable markets and competitive moats.
Investment Philosophy & Target Return Objective*
The Innovation Strategy was developed to capitalize on secular growth trends and disruptive innovation. Capital allocated to moat-worthy, disruptive growth companies at reasonable prices should appreciate at a rate commensurate with the growth of the underlying business. EGA’s target return objective is to generate attractive risk-adjusted returns and to double invested capital over a five-year period using a low turnover barbell strategy that couples core growth with potential “multi-baggers.”
* EGA makes no claim targeted objectives are a guarantee of actual returns.
Growth + Moat
Secular Growth Trends
- Artificial Intelligence
- Cloud Computing
- Digital Networks
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