FIAM Small Cap Growth

  • Leveraging a foundation of rigorous fundamental research to seek alpha
  • Growth portfolio that invests actively within small cap universe
  • Comprehensive portfolio construction designed to exploit our strengths in both research and risk management

Investment Process

UniverseIdea GenerationPortfolioConstructionSmall CapGrowth PortfolioCompanies we consider:• ~3,000 companies• Market cap < $5B• Traded on US exchangesHow we evaluate theuniverse:• Broad coverage• Multiple layers offundamental expertiseUncover opportunities:• Regular meetings withFIAM Small cap analysts• Engage with Fidelityresearchplatform—broadcoverage yieldspotential small capideasNarrow opportunity set:• Evaluate research ideasto understand ifappropriate forportfolio• Further refine analysisto identify inflections ingrowth and/orsustainable growthmodels to develop athesis for potentialoutperformanceGoals:• Minimize non-stockrisk in the portfolio• Harness overall risk ina purposeful wayConsiderations:• Industry positioning• Factor exposures• Thesis creep• 75–150 holdings• Long-term orientation• Performance drivenby stock selectionLarge diverse universe offersopportunityInvest where results arefavorable and asymmetricConstantly assess path to targetprice realizationCapitalize on short-termdislocationsChanges in valuations triggerreview of thesis

Key Facts

Inception date April 30, 2015
Benchmark Russell 2000 Growth
Separate account minimum $50M
Typical tracking error* 3%–5%
Sector constraint +/- 5.0%
Security constraint +/- 4.0%
Typical portfolio turnover 50%–90%


The Small Cap Growth strategy seeks to outperform the Russell 2000 Growth Index over a full market cycle.

Investment Approach

The strategy uses a fundamental research intensive process designed to leverage the breadth and depth of our entire research platform. It seeks to build a balanced portfolio of companies with a positive inflection in organic growth or with a sustainable growth model that can consistently generate profit growth above market expectations.

Portfolio Managers

Todd Haggerty
Todd Haggerty Portfolio Manager

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