Granahan Investment Management Marks 30-Year Anniversary of Flagship Small Cap Core Growth Strategy; Outperforms Benchmark, Peers Since Inception

WALTHAM, Mass., May 25, 2023 /PRNewswire/ -- Granahan Investment Management, LLC., an employee-owned SEC-registered small cap growth equity specialist, recently marked the 30-year anniversary of its flagship strategy, Granahan Small Cap Core Growth, which has outperformed its benchmark and category competitors since inception.

Launched April 30, 1993, the Small Cap Core Growth strategy has gained 12.2% net of fees on an annualized basis through April 29, 2023, compared with 7.5% for the Russell 2000 Growth Index. The strategy has also outperformed its benchmark for the 10-, five- and three-year periods on an annualized basis through March 31, 2023. Granahan Small Cap Core Growth lags the Russell 2000 Growth Index for the one-year period through March 31, 2023.

The team-managed strategy ranks as a top quartile performer in the eVestment U.S. small cap growth universe for the five and 10-year periods through March 31, 2023. Since inception through March 31, 2023, the strategy ranks in the 19^th percentile among peers in its category. eVestment, part of Nasdaq, provides institutional investment data, analytics and market intelligence covering public and private markets.

"We believe active management is critical to success in evaluating small cap stocks. Our long-term track record has been achieved by maintaining a disciplined, bottom-up process over three decades and having a specialized team of highly experienced investment professionals able to uncover secular growth companies that are dynamic drivers of change," said Jane White, Granahan's co-founder, president and CEO.  

Granahan Small Cap Core Growth provides strong risk management because it is diversified by sector, LifeCycle category (core growth, pioneer, special situation), and fund manager. The market capitalization of companies in the strategy generally ranges from $200 million to $5 billion at purchase. As of March 31, 2023, the strategy's largest holdings were in the technology, healthcare and industrials sectors and total assets were $920 million. The minimum investment is $10 million.

The strategy is managed by: Andrew (Drew) Beja, Jeffrey Harrison, Kelvin Jiang, Jennifer Pawlowski, David Rose, and Richard Watson. White provides strategic oversight.

"Earnings estimates have come down significantly for small cap stocks, as recession remains a possibility. Yet history shows that small cap companies are likely to recover and move up even before there's widespread evidence of renewed economic growth," said David Rose, Granahan's chief investment officer. "We believe significant innovation is currently undervalued. Key growth drivers of digital transformation, biotech breakthroughs and sustainability remain powerful forces in the small cap universe, despite the current headwinds."

Over the past three decades, the Small Cap Core Growth team has invested in a number of stocks early in their development that have subsequently become among the biggest U.S. companies by market capitalization, including Salesforce.com, Dexcom, Shopify, and Chipotle.

ABOUT GRANAHAN INVESTMENT MANAGEMENT
Granahan Investment Management, LLC. (GIM), founded in 1985, is a small-cap growth equity specialist with broad employee ownership and $3.3 billion in assets under management as of March 31, 2023. The firm offers micro-cap, small cap, mid cap, and SMID strategies for institutions and high net worth individuals worldwide. In 2022 the firm was named for the second consecutive year as a "Best Places to Work in Money Management" by Pensions & Investments and is a founding member of the Wall Street Diversity Accelerator Program (WSDA), which is entering its fourth year. For more information, visit www.granahan.com.

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SOURCE Granahan Investment Management