Falcon Point Capital, LLC is a San Francisco-based SEC-registered investment advisor focused on smaller cap growth companies. We provide asset management services to high net worth individuals, family offices, pension plans, endowments, and foundations. In late 2004, senior management successfully completed a management buyout that gave the employees 100% ownership. Falcon Point's investment team has over 100 years of combined experience managing investments and is complimented by a seasoned operations and investor relations team.
Our disciplined bottom up research methodology, our experience in small growth stocks and our focused portfolios have enabled us to provide alpha to our clients over the long term. The firm's primary equity strategies include: Small Cap Growth Strategy, Long/Short Strategy, Smaller Cap Opportunities Strategy, and SMID Cap Strategy.
The Small Cap Growth Strategy is a long only, small cap strategy designed to outperform the Russell 2000 Growth Index. The investment team employs detailed fundamental analysis to build a diversified portfolio of approximately 30-50 stocks. The team seeks to identify companies that are able to combine sustainable, above average revenue growth with expanding margins and increasing returns on invested capital. We buy these stocks at valuation levels that we believe provide the potential for significant returns over the strategy's expected 12-18 month holding period. We believe that the combination of strong fundamental research and a disciplined approach to valuation provides superior risk-adjusted returns over the course of time.
The Long/Short Strategy is a long/short strategy which primarily invests in small to midsize public companies with high earnings growth potential. We deploy a disciplined investment process where the portfolio managers typically select 30-50 top quality, profitable, high potential growth companies for the long side of the portfolio. Short sales are made of companies that the portfolio managers believe are fundamentally overvalued and likely to report earnings results that are below Wall Street expectations.
The Smaller Cap Opportunities Strategy is a long only, micro cap strategy designed to outperform the Russell Micro Cap Growth Index. The Strategy utilizes Falcon Point's time-tested, disciplined and fundamental investment process. Similar to Falcon Point Capital's other products, the Smaller Cap Opportunities Strategy is a focused portfolio, typically with 30-60 stocks across all sectors. Focused funds provide ample diversification while allowing only the best ideas to make it into the portfolio.
The High Yield Strategy seeks to provide above average risk-adjusted returns by focusing on current income and long-term capital appreciation through investments in convertible debt and other high yielding, publicly traded securities. The investment team uses detailed fundamental analysis to identify investment opportunities in out of favor (or emerging) companies that we believe are likely to regain (or achieve) attention over time. The other key investment criterion is a relatively high and sustainable current yield. We believe the current yield provides an important level of downside protection, while the expected improvement in fundamentals provides the upside through capital appreciation.
The SMID Cap Strategy is a long only, SMID cap strategy designed to outperform the Russell 2500 Growth Index. The investment team employs detailed fundamental analysis to build a diversified portfolio of approximately 30-50 stocks. The team seeks to identify companies that are able to combine sustainable, above average revenue growth with expanding margins and increasing returns on invested capital. We buy these stocks at valuation levels that provide the potential for 25+% returns over the strategy's expected 12-18 month holding period. We believe that the combination of strong fundamental research and disciplined approach to valuation provides the opportunity for above average risk-adjusted returns over the course of time.
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