US Discovery

We carry out in-depth research to unearth immature, disruptive companies. Once found, we want to hold them for the long term as they grow and scale. We mainly consider opportunities below $10bn market cap. However, at least 80 per cent of assets will be invested in companies with a market cap of $30bn or smaller.

The attraction of investing in smaller companies is the range of possible outcomes.

This can lead the strategy to display pronounced volatility, especially over the short- to medium-term. Yet investing early increases the possibility of a highly asymmetrical outcome. We aim to harness this to deliver overall strategy returns.

The strategy aims to outperform (net of fees) the Russell 2500 Growth Index, predominantly through capital appreciation, over rolling five-year periods.

Our portfolio is constructed entirely from the bottom up, disregarding the benchmark. It has an extremely high active share and operates in a large investible universe. We position ourselves along the frontiers of innovation and technological development. 

What unites the companies we invest in is immaturity. We define this as: innovating to solve significant problems and reshape an industry, emerging competitive edge, quality and ambition of management, and scalability. 

This pursuit of immaturity is unique to US Discovery.