Our Mid Cap Quality Growth strategy focuses on owning medium-size companies with an average market capitalization at purchase between $1.0 billion and $12.0 billion. Protection of capital in falling markets, providing an above-average and growing income stream, and strong performance all relative to medium-size company managers constitute the strategy’s goals.
Bahl & Gaynor’s equity selection process yields an investable universe of companies that are managed conservatively and for long-term growth, have stable and sustainable business models, and reward shareholders of the company with a growing dividend. From this investable universe, the Mid Cap Quality Growth strategy seeks medium-size companies with the ability to grow their dividend payments at a high rate in the future.
Over a full market cycle of five to seven years, Bahl & Gaynor’s Mid Cap Quality Growth strategy seeks to outperform its benchmark and mid-capitalization growth peers all in the context of a lower-than-average portfolio risk profile.
Client portfolios will generally be diversified among a selection of 40 to 60 common stock issues with each security typically held for three to five years. Low portfolio turnover combined with the favorable tax treatment of dividend income results in a cost and tax-efficient portfolio.