Bridge City Capital Focused Small Cap Growth

Objective: To outperform the Russell 2000 Growth benchmark by 150 to 200 bps annualized, over a normal market cycle, gross of fees.

Our Focused Small Cap Growth strategy (FSCG) is focused on investing in quality small cap growth companies with proven track records, strong financial characteristics, and above-average growth prospects at attractive valuations. We limit the number of positions to twenty-five small cap growth positions where we have the highest conviction. We believe this quality-centric strategy will lead to strong relative returns over the long run.

Bridge City's investment process provides a disciplined framework to guide investment decisions. It helps us identify high-quality small cap growth companies by measuring and assigning numerical values to each company's qualitative characteristics, growth & profitability metrics, and financial strength. Valuation is assessed using internally developed earnings projections. Resulting scores help avoid story stocks with flawed fundamentals and gauge a company's relative attractiveness against its peers to identify the highest quality companies trading at attractive valuations.

Our FSCG strategy is long only. Portfolio construction aims to isolate performance to stock selection by being fully invested in the companies where we have the highest conviction