Small & Mid Cap Equity Growth Strategy

SMALL & MID-CAPITAL EQUITY GROWTH STRATEGY

SMALL & MID-CAP EQUITY GROWTH STRATEGY

The Small and Mid-Capital, Equity Growth Strategy focuses on investing in small and mid-sized companies with strong growth potential. These companies, often in the early or middle stages of their business lifecycle, offer the possibility of higher returns compared to large-cap companies, albeit usually with a higher level of risk. This strategy is ideally suited for investors with a long-term investment horizon and a higher risk tolerance.

Key Elements of the Strategy:

Focus on Small and Mid-Cap Stocks: This strategy targets companies that fall into the small and mid-cap categories. These companies are often characterized by significant growth potential and typically have a market capitalization ranging from $300 million to $10 billion.
Fundamental Analysis: Identifying promising small and mid-cap stocks requires detailed fundamental analysis. This includes assessing a company's financial health, business model, industry position, management quality, competitive landscape, and growth prospects.
Growth Identification: The strategy seeks to identify companies with strong growth potential. This could be indicated by factors such as high or accelerating revenue growth, expanding profit margins, innovative product lines, entry into new markets, or other positive business catalysts.
Long-Term Investment Horizon: This strategy requires a long-term investment horizon due to the nature of investing in smaller companies. The full growth potential of small and mid-cap stocks often takes time to materialize, and investors should be prepared to weather periods of volatility.
Diversification: Diversification is key to managing risk within this strategy. This includes diversification across different sectors, industries, and even geographical locations to ensure the portfolio is not overly exposed to any single area.
Active Portfolio Management: Active portfolio management is crucial given the volatility often associated with small and mid-cap stocks. Regularly monitoring portfolio holdings, ongoing market research, and prompt adjustments based on changing market conditions or company performance are integral to achieving the strategy's objectives.
Risk Management: Investing in small and mid-cap stocks can carry higher risks, including market liquidity risk, business risk, and higher price volatility. Therefore, sound risk management principles such as position sizing and maintaining a balanced portfolio are essential.

Summary: The Small and Mid-Capital, Equity Growth Strategy offers the potential for significant capital appreciation by investing in high-growth small and mid-cap companies. While this strategy can offer substantial returns, it also comes with increased risk and volatility compared to investing in larger, more established companies.

Strategies Overview

At Infinitus Wealth Management, we deliver personalized wealth management strategies that align with your specific financial objectives and individual risk tolerance. Our approach is grounded in a thorough understanding of global financial markets and consistent research, allowing us to construct diverse, resilient, and custom portfolios intended to withstand market volatility while pursuing attractive returns.

We build custom portfolios and offer multiple investment strategies to meet our clients' unique investment goals. We actively manage several US equity, international equity, fixed income, tax-exempt fixed income, and blended strategies ranging from large-cap to small-cap equity and income-generating strategies.

Asset Allocation: Our investment strategy starts with asset allocation, which we consider the most vital determinant of portfolio returns and risk management. We create a balanced mix of various asset classes, such as equities, fixed income, cash, real estate, and alternatives. The blend is customized to your risk appetite, financial objectives, and investment time horizon.

Diversification: We adhere to the principle of diversification among asset classes and within each asset class. By spreading investments across various sectors, geographic locations, and market capitalizations, we aim to mitigate risk potential.

Risk Management: Risk assessment forms a crucial part of our investment strategy. We continuously monitor and adjust portfolios to manage exposure to market risks. By utilizing advanced risk management techniques and tools, we ensure your portfolio aligns with your personal risk tolerance and long-term objectives.

Tactical Asset Allocation: We go beyond a static allocation approach by employing tactical asset allocation strategies. Our investment team actively adjusts the asset mix in response to short-term market predictions to exploit market inefficiencies or seize new opportunities while maintaining a balance with the strategic asset allocation targets.

Tax-Efficient Investing: Our strategies consider the impact of taxes on your investment returns. We aim to maximize after-tax returns through strategies like tax-loss harvesting, holding investments longer for favorable long-term capital gain rates, and strategically placing investments in tax-advantaged accounts.

Regular Portfolio Review and Rebalancing: Investment is not a one-time action but a dynamic process that requires ongoing oversight. We conduct regular reviews of your portfolio to ensure it remains in line with your goals and risk tolerance. Rebalancing, when necessary, helps maintain the desired level of risk and return.

At Infinitus Wealth Management, we understand that every client's investment journey is unique. As such, we don't offer a one-size-fits-all strategy but instead customize each portfolio to suit your individual needs and preferences. Our team is committed to working closely with you, providing the guidance and resources necessary to navigate the complex world of investing and to help your wealth grow and persevere over time.