U.S. Large Cap Growth Equity Concentrated
- Employs a thematic approach to identify secular winners with large addressable markets
- Combines investment themes with bottom-up, fundamental analysis of stocks looking for businesses that can compound revenues and cash flows across a cycle at a multiple of GDP
- Focuses on businesses that we believe have a strong ownership culture, and exhibit both a high level of growth and an above average duration of growth
Benchmark indexRussell 1000 Growth Index
AUM ($M) Strategy †13,886
AUM ($M) Composite †68.8
Typical range of portfolio holdings25–40
Related Putnam mutual fundGrowth Opportunities Fund
*No assurance can be given that the investment objective will be achieved or that an investor will receive a return of all or part of his or her investment. Actual results could be materially different from the stated goals. Investors should carefully consider the risk involved before deciding to invest. As with any investment, there is a potential for profit as well as the possibility of loss. Portfolio targets are subject to change.
†Strategy assets include assets for aggregate strategy accounts that are not reflected in the composite. Strategy inception represents the aggregate strategy inception date.
A commitment to deep fundamental research
The team analyzes global trends, as well as problems and potential solutions, to identify which themes could drive sustained growth for businesses over a multi-year time horizon. Learn more about the theme-based strategy and the experiences that shaped the managers' investing approach.
Performance and holdings as of 3/31/21
Composite performance (%)
Past performance is not a guarantee of future results. An investment in this strategy can lose value. Returns are stated in U.S. dollars and include the reinvestment of dividends and interest. Returns less than one year are not annualized. Most recent quarter-end performance is preliminary. Returns are subject to change. Portfolio characteristics are for a representative account and are shown for illustrative purposes only. Portfolio characteristics of individual accounts managed to a model portfolio strategy may differ as a result of account size, client-imposed investment restrictions, the timing of client investments, market, economic and individual company considerations, and other factors. The inclusion of holdings information should not be interpreted as a recommendation to buy or sell or hold any security. The securities identified do not represent all the securities purchased, sold, or recommended for client accounts. It should not be assumed that an investment in the securities identified was or will be profitable. Holdings are subject to change.
Top 10 portfolio holdings (%)
|Apple||8.6||Technology hardware, storage and peripherals|
|Amazon||7.4||Internet and direct marketing retail|
|Alphabet||6.1||Interactive media and services|
|3.3||Interactive media and services|
|UnitedHealth||3.3||Health care providers and services|
|NVIDIA||3.0||Semiconductors and semiconductor equipment|
Performance commentary as of 3/31/21
Despite concerns about rising Covid-19 cases and an uptick in inflation expectations, U.S. equities posted positive returns for the first quarter. The market largely favored value orientated and small-cap companies. In this environment, the strategy marginally underperformed its benchmark, the Russell 1000 Growth.
As this is a concentrated portfolio, stock selection will be the leading driver of returns. By sector, selections within industrials, healthcare and communication services detracted most from relative performance. Favorable positions within consumer discretionary and financials offset some of the negative impact. Top detractors for the period included our exposure to Apple, Amazon, Tesla and CoStar. Alphabet, DraftKings, Microsoft and Airbnb were among our top contributors.
Looking ahead, we believe that though value may outperform for short periods of time (when it gets too cheap on a relative basis), an investor, with any appreciable time horizon, should bet on growth. We continue to believe growth is where the innovation is in the economy. Additionally, we see lasting opportunities from changes in behavior as consumers adjusted to the pandemic, such as contactless payments, cloud infrastructure, software as a service, and telemedicine.
Performance commentary is not intended to be relied upon as a forecast or as research, or investment advice, and is not a recommendation, offer, or solicitation to buy or sell any securities or to adopt any investment strategy. It should not be assumed that an investment in any security mentioned was or will be profitable. As with any investment, there is a potential for profit as well as the possibility of loss. Past performance is no guarantee of future results.
The strategy was formerly named the U.S. Large Cap Growth Equity Separately Managed Account.
The Russell 1000 Growth Index is an unmanaged index of those companies in the large-cap Russell 1000 Index chosen for their growth orientation. Frank Russell Company is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. You cannot invest directly in an index.
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Model-based managed accounts programs: Putnam Investments and its affiliates, which include The Putnam Advisory Company, LLC and Putnam Investment Management, LLC (“Putnam”), is limited to providing non-discretionary investment management services through Separately Managed Account (SMA) and Unified Managed Account (UMA) programs or other third-party platforms (collectively, the “Financial Intermediary”), where Putnam generally provides ongoing investment recommendations through one or more “model” portfolios, and the Financial Intermediary, rather than Putnam, makes investment decisions and executes trades on behalf of its underlying clients. The Financial Intermediary decides in its discretion whether to make any changes to the model that Putnam recommends, and is also solely responsible for determining the suitability of the strategy and investments for each client that participates. This information is not personalized investment advice or an investment recommendation by Putnam, and is intended for use only by a Financial Intermediary in connection with its management of its own clients’ accounts. Putnam does not have investment discretion over, or place trade orders for, any portfolio or account derived from this information. Performance of any portfolio or account derived from this information may vary materially from the performance shown herein. There is no guarantee that any investment strategy illustrated will be successful or achieve any particular level of results. Information and other marketing materials created by Putnam concerning a model portfolio strategy — including holdings, performance and other characteristics — may not be indicative of a client’s actual experience from an account managed in accordance with the strategy. This material has been created by Putnam and the information included herein has not been verified by a Financial Intermediary and may materially differ from information provided by a Financial Intermediary. Putnam is not responsible for overseeing the provision of services by a Financial Intermediary and cannot assure the quality of its services.