LARGE CAP GROWTH LARGE CAP GROWTH Profile Criteria Team Continuity Portfolio Characteristics Top 10 Holdings Brian H. Donohue, CFA, 26 years Andrew T. Flis, CFA, 11 years Gary E. Nussbaum, CFA, 32 years • Founded in 1983 • Consistent application of our pure investment style and process • Seasoned investment team • Limited institutional client base • Assets under management $773 million Weighted Avg. Cap. ($B) .................. $224.6 Median Cap. ($B)............................. $42.4 P/E (forward 12) ............................ 30.7x CFROI ................................................22% Total Debt/Capital............................24% Turnover (10 year annual avg.) ........21% Companies in the portfolio ................ 29 Amazon Com Inc Adobe Sys Inc Visa Inc Facebook Inc Class A Vertex Pharmaceuticals Inc CoStar Group Inc ServiceNow Inc Teledoc Health Inc Veeva Systems Ares Management Corp Idenfying companies sustaining a minimum 12% secular free cash flow growth. Characteriscs include: 1 1 High unit volume growth - the ultimate litmus test - Recurring revenue streams - Network effects - Organic growth - Large addressable markets 2 2 Sustainable competitive advantages 3 3 Substantial ability and opportunity for reinvestment Cultures and incentives for growth and innovation Long Duration, High Earnings Growth First Quarter 2020 Philosophy Over the long term, earnings growth is the primary driver of total shareholder returns. We manage your portfolio as a single diversified growth company producing an underlying portfolio free cash flow growth rate of at least 12% and translating that into strong secular absolute and relative returns. ® COMBINED EXPERIENCE 69 YEARS Our objective is to translate HIGH PORTFOLIO FREE CASH FLOW GROWTH into CLIENT RETURNS We manage the portfolio as if it were a single, diversified growth company. Invest in businesses, not stocks, to fully participate in our holdings’ dynamic free cash flow growth with low turnover. 1 Duration and growth are preeminent. Target 12% minimum free cash flow growth for every holding to produce strong absolute as well as relative long-term portfolio investment returns. 2 Opportunity for growth determines decisions, not benchmark. High conviction portfolio of 25 to 35 companies to increase probability of achieving objective. 3 4 4
Transcript
L A R G E C A P G R O W T HL A R G E C A P G R O W T H
Profile
Criteria
Team Continuity
Portfolio Characteristics Top 10 Holdings
Brian H. Donohue, CFA, 26 yearsAndrew T. Flis, CFA, 11 yearsGary E. Nussbaum, CFA, 32 years
• Founded in 1983
• Consistent application of our pure investment style and process
• Seasoned investment team
• Limited institutional client base
• Assets under management $773 million
Weighted Avg. Cap. ($B) .................. $224.6Median Cap. ($B) ............................. $42.4P/E (forward 12) ............................ 30.7xCFROI ................................................22%Total Debt/Capital ............................24%Turnover (10 year annual avg.) ........21%Companies in the portfolio ................ 29
Amazon Com IncAdobe Sys Inc Visa IncFacebook Inc Class AVertex Pharmaceuticals Inc CoStar Group IncServiceNow IncTeledoc Health IncVeeva SystemsAres Management Corp
33 Substantial ability and opportunity for reinvestment
Cultures and incentives for growth and innovation
Long Duration, High Earnings Growth
First Quarter 2020
PhilosophyOver the long term, earnings growth is the primary driver of total shareholder returns. We manage your portfolio as a single diversified growth company producing an underlying portfolio free cash flow growth rate of at least 12% and translating that into strong secular absolute and relative returns.
®
COMBINED EXPERIENCE
69YEARS
Our objective is to translate HIGH PORTFOLIO FREE CASH FLOW GROWTH
intoCLIENT RETURNS
We manage the portfolio as if it were a single, diversified growth company.
Invest in businesses, not stocks, to fully participate in our holdings’ dynamic
free cash �ow growth with low turnover.
1
Duration and growth are preeminent.
Target 12% minimum free cash �ow growth for every holding to produce strong absolute as well as relative
long-term portfolio investment returns.
2
Opportunity for growth determines
decisions, not benchmark.
High conviction portfolio of 25 to 35 companies to
increase probability of achieving objective.
3
44
Commitment
Research & Decision-Making Flow
Long Duration, High Growth Offers Significant Opportunity
Peregrine Large Cap Growth Composite
Peregrine’s Client Service & Marketing professionals are dedicated to understanding your individual needs, assuring customized client service and developing a long-term, attentive relationship.
Stefanie M. Adams(612) 343-7660RuthAnn DeFrang(612) 343-7639
800 LaSalle Avenue - Suite 1850Minneapolis, Minnesota 55402(612) 343-7600(888) 343-7600www.peregrine.com
The composite includes all fully discretionary portfolios invested in Peregrine’s Large Cap Growth strategy. Net performance includes the effect of advisory or performance fees, while gross performance does not. Both gross and net performance reflects the reinvestment of dividends and interest, and the deduction of brokerage or other commissions, and any other expenses that a client would have paid or actually paid, other than custodial fees. Performance results for the period 1/1/83 through 1/1/88 is for accounts managed by John Dale while he was employed by Peregrine’s former parent company and managed the same strategy. Mr. Nussbaum joined Peregrine 9/1/90 and co-managed the strategy with Mr. Dale from that time until 6/30/15, when Mr. Dale retired from Peregrine. Mr. Donohue joined the team 1/1/11. Past performance is no guarantee of future results. As with any investment there is always potential for gains as well as the possibility of losses.
