Style / Philosophy
The philosophy emphasizes companies with superior growth
potential. A company’s sales growth must be due to a
strong demand for its unique products/services, thereby driving
earnings growth. We focus on niche-oriented, high quality
strategy is to identify companies in the early stages of rapid
growth that are trading at attractive price-to-earning multiples,
thereby maximizing upside potential while limiting downside
risk. In this way, our investments benefit two-fold from the
underlying earning-per-share growth and an expanding P/E multiple.
Portfolios are constructed stock by stock. Country and sector weightings are a
function of where we find the most attractive growth companies
and are not structured to mirror an index.
are highly competitive, rapidly growing companies primarily
in developed markets. We concentrate our investments around
themes and trends that are taking place globally, regionally
or in a specific country and identify the leaders that stand
to benefit the most. We look for dynamic companies that have
a leading product or service with a catalyst sparking sales
and earnings growth. Additionally, we place a heavy emphasis
on the quality of management, which includes a proven track
record of success and clearly defined goals and strategies
for future growth.
international investment process is predominantly bottom-up
driven. Country and sector weightings are a reflection of
where we are finding the most attractive growth ideas from
a company standpoint. We focus our investments in themes,
or pockets of growth, and identify the companies that benefit
upstream and downstream. Many times it is the “tail
wagging the dog” and we find one fast growing company
that leads us to many other opportunities within a larger
Pinnacle has been
investing in smaller foreign companies for more than a decade.
International small caps are a specialized asset class that
requires a more intensive bottom-up company analysis in order
to reduce risk. Our research
is supplemented by an external worldwide network of analysts,
the majority of who work exclusively in small caps within
their particular market or area of expertise.
We focus on high-quality growth companies
with the strongest fundamentals that are operating in a sound
macroeconomic environment and within a longer-term sustainable
trend. We avoid speculative situations where future sales/earnings
growth and operating margins are less predictable with lower
visibility. We strive to find those companies that we can
invest in for the longer-term to participate in the growth
and success of their unique products/services.
encourage client meetings as frequently as needed in order
to build the trust that is essential in any client-advisor
relationship. We generally have met with clients one or two
times a year, depending on the client’s needs. Also,
conference calls, written updates, etc., are important elements
of our client communication strategy.
International Small Cap Portfolio is managed by David Dineen and Johnathan Mark.