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Alcosta Capital Management's Growth Composite has Outperformed The S&P 500 Index on a Cumulative Basis for More Than 12 Years

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  • Alcosta Capital Management’s long-term outperformance is due in part to its unique approach to picking growth stocks
  • Alcosta Capital Management anticipates a strong economy over the next year, with quality growth stocks likely doing well

Alcosta Capital Management, Inc., a San Ramon, California-based investment management firm, today released performance results for its Composite of Growth accounts.  Once again, the nationally recognized firm’s Growth Composite has outperformed the S&P 500 Index, a leading indicator of the growth of publicly traded U.S. stocks.

For the year ending March 31, 2015, Alcosta Capital Management's Growth Composite increased 21.43% on a net basis. This compares favorably against an increase of 12.73% for the S&P 500 Index.  Alcosta’s Growth Composite also outperformed the S&P 500 over a five year period by increasing 138.61% net versus an increase of 96.50% by the S&P 500 Index. Over the more than 12-year period since the firm was founded on January 1, 2003, Alcosta Capital Management's Growth Composite grew 227.99% on a net basis.  This performance compares favorably against growth of 201.72% for the S&P 500 Index, during the same period.

“We have taken an approach that has made sense over the long-term. We shun fads and stocks that are the flavor of the month – this is the approach of someone trying to make quick, short-term gains as opposed to creating long-term wealth. If a security doesn’t pass our research process, it is not included in our portfolio, regardless of, what can be fickle market sentiment,” said Erick E. Ormsby, President and Chief Investment Officer of Alcosta Capital Management.

Alcosta begins its research process with a list of approximately five thousand companies listed on the major U.S. exchanges, and finds those whose prices are increasing with low volatility. The firm then selects those that are outperforming the general market creating a list of approximately 100 stocks. Finally, Alcosta dives deeply into each company looking at criteria such as sales growth, profit margins and return on capital, and then selects the stocks it believes offer the most opportunity for growth. This selection process occurs on a systematic basis, and the portfolio is monitored daily.

“We don’t anticipate a recession occurring in the next 12 months, and our research suggests the stock market is likely to do well over this time period,” continued Ormsby. “We believe growth companies can maintain their momentum as the economy experiences a more sustained recovery. If, however, the recovery is not robust, these companies may still be attractive as they would likely be able to generate revenue growth from their own products and services as opposed to being overly dependent on the tailwind of a good economy.”

The Growth Composite, created on January 1, 2003, contains fully discretionary growth equity accounts with an objective of maintaining an approximate allocation of greater than 90% in growth stocks over the long term.

 

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Press Contacts:

FiComm Partners

Jason Lahita -- 973-460-7837, jason.lahita@ficommpartners.com

Nabil Ashour -- 917-210-0099, nabil.ashour@ficommpartners.com  

About Alcosta Capital Management

Alcosta Capital Management is a Registered Investment Advisor dedicated to helping individual investors benefit from strategic, long-term growth investing. The firm tailors portfolios for investors based on their unique investment objectives and risk tolerances. The firm also takes a rigorous and unbiased approach in its research and selection of investment alternatives for clients, and is recognized for close monitoring of portfolio performance and the quality and consistency of communication with its clients.

The firm publishes The Alcosta Growth Report, a monthly newsletter that has been recognized as a top performing investment newsletter by Hulbert Interactive, the online database of the Hulbert Financial Digest, an independent rating service and a division of MarketWatch, Inc., a unit of Dow Jones & Co.  Additional information regarding Alcosta Capital Management, Inc. and The Alcosta Growth Report is available at www.alcostacapital.com