Edge Capital Research Team
Research Insights – Value vs. Growth
At Edge, we are long-term focused and valuation driven in our investment philosophy. Our investment process is focused on fundamentals and forward looking valuation – the price paid for an asset is the primary determinant of future return. Within equities, our focus is no different. We pay attention to quality and fundamentals, but we strive to avoid geographies, sectors, and companies priced for perfection. There is much debate on investment styles of equity managers as whether one should be categorized as value or growth. A value investor could argue Apple is a value stock because it trades at 12x earnings, much less than the market. A growth investor could argue Apple is a growth stock because it has grown earnings at a 25% annualized rate over the last three years, much more than the market. That being said, if Edge was forced to put its equity philosophy in a bucket, we would have to choose value.