Authors

Edge Capital Research Team

Download

Research Insights – Value vs. Growth

Summary

At Edge, we are long-term focused and valuation driven in our investment philosophy.  Our investment process is focused on fundamentals and forward looking valuation – the price paid for an asset is the primary determinant of future return.  Within equities, our focus is no different.  We pay attention to quality and fundamentals, but we strive to avoid geographies, sectors, and companies priced for perfection. There is much debate on investment styles of equity managers as whether one should be categorized as value or growth.  A value investor could argue Apple is a value stock because it trades at 12x earnings, much less than the market.  A growth investor could argue Apple is a growth stock because it has grown earnings at a 25% annualized rate over the last three years, much more than the market.  That being said, if Edge was forced to put its equity philosophy in a bucket, we would have to choose value.

THE OPINIONS EXPRESSED HEREIN ARE THOSE OF EDGE CAPITAL PARTNERS (“EDGE”) AND THE REPORT IS NOT MEANT AS LEGAL, TAX OR FINANCIAL ADVICE. THE PROJECTIONS OR OTHER INFORMATION GENERATED BY THIS REPORT REGARDING THE LIKELIHOOD OF VARIOUS INVESTMENT OUTCOMES ARE HYPOTHETICAL IN NATURE, DO NOT REFLECT ACTUAL INVESTMENT RESULTS AND ARE NOT GUARANTEES OF FUTURE RESULTS. YOU SHOULD CONSULT YOUR OWN PROFESSIONAL ADVISORS AS TO THE LEGAL, TAX, OR OTHER MATTERS RELEVANT TO THE SUITABILITY OF POTENTIAL INVESTMENTS. THE EXTERNAL DATA PRESENTED IN THIS REPORT HAVE BEEN OBTAINED FROM INDEPENDENT SOURCES (AS NOTED) AND ARE BELIEVED TO BE ACCURATE, BUT NO INDEPENDENT VERIFICATION HAS BEEN MADE AND ACCURACY IS NOT GUARANTEED.