Emerald Advisers, Inc. (“EA LLC”) is a registered investment adviser investing our
client’s assets primarily in U.S. domestic equity securities. Our investment strategies
include small, mid and capitalization stocks. Emerald has been providing
discretionary advisory services to institutional, governmental, trusts, estates,
charitable and high net worth individuals since it was founded in 1991.
EA LLC is a wholly-owned subsidiary of Emerald Asset Management PA, LLC.
Emerald Asset Management PA, LLC is owned by Emerald Asset Management Inc.
and an affiliate of the 1251Capital Group Inc.
As of December 31, 2019, EA LLC had approximately $2.4 billion in discretionary
assets under management.
Advisory Services:
For EA LLC’s Small capitalization growth products we seek to maximize returns and
minimize risks by capitalizing on the inefficiencies inherent in today’s small cap
markets.
Our Small Cap Growth product objective is to outperform its Russell Growth Index
benchmark by investing in companies with the following attributes:
Capitalization less than or equal to the largest in the Russell 2000.
Competitive advantages
Leadership position
Growth rate exceeds peer group
Differentiated growth drivers
Our Mid Cap Growth product seeks to maximize returns and minimize risks by
capitalizing on the inefficiencies inherent in today’s mid-cap markets. Our Mid Cap
Growth product objective is to outperform its Russell Mid Cap Growth benchmark
by investing in companies with the following attributes:
Capitalization less than or equal to the largest Russell Mid Cap Growth company
Competitive advantages
Increasing ROIC
Leadership position
Growth rate exceeds peer group
Differentiated growth drivers
Our All Cap product seeks long-term capital appreciation, through active portfolio
management, by investing in large, mid and small capitalization growth companies.
This product strives to own the best investment ideas emanating from the deep
research effort of our analyst and portfolio management teams. This product has the
flexibility to invest anywhere along the market capitalization spectrum and pick
from all corners of the equity growth
universe. This product is dedicated to owning
a subset of the market’s most rapidly growing and well-run companies, irrespective
of market capitalization.
Our Small Cap Value product invests in domestic small cap value equities with a
market capitalization range of approximately $150 million to $2.5 billion at the time
of investment. Emerald Small Cap Value philosophy is to own companies that are
statistically cheap, generate great amounts of free cash flow and possess catalysts
for improved operating performance that are not properly discounted by the
market.
The Smallcap, Midcap and Allcap products will include some form of general
economic overview, but will concentrate more heavily on fundamental, bottom-up
research to identify unrecognized, under-researched companies and their suitability
for our client’s objectives. We will review a company’s annual report, 10-k filings
and other published information gained from news sources, brokerage reports and
recommendations. Whenever possible we will seek to discuss a particular company
with its senior management, employees, customers, competitors and brokerage
researches who specifically follow that company or its industry. In-person visits
with company management are desirable whenever possible.
For EA LLC’s Diversified Financial Services product, through our stock selection
process, provides a broad industry mix of financial stocks resulting in diversification
within the financial sector. With fewer industry analysts covering community banks,
portfolio management seeks to capitalize on undervalued and under-researched
opportunities. This product has a growth stock orientation as portfolio management
seeks growing companies in a traditional value sector. The selection process
incorporates a focus on high asset quality and attractive valuation along with the
following key factors:
Smaller market capitalization
Strong earnings growth
Strong management & execution
Attractive valuations
Growth rate exceeds peer group
EA LLC may accept client imposed restrictions in our investment adviser accounts.
Certain restrictions such as no tobacco or adherence to MacBride principals are
accepted.