Traditionally, professional money managers have relied on a large basket of equities to manage volatility. LCC manages risk by holding fewer securities, following fewer companies and knowing more about each one. Portfolios are typically structured with 15 or fewer securities, and a single holding may represent as much as fifty percent of the total portfolio. Our experience shows that more diversification does not necessarily reduce equity risk or improve performance. Because LCC holds fewer securities, portfolio returns typically have greater volatility than major equity indices.
Growth stocks tend to have high revenue and earning-growth rates.