Bestinvest says
Marsico employs a hands on approach to fund management, with the investment team doing the majority of the necessary detailed investment work and stock scenario tests themselves, as opposed to relying on the outside broker community. The process has achieved reasonable success since the team took over the fund – the company also has a longer track record running funds in the US.
Over 90% of research is in-house, with an emphasis on "outside the box" thinking to generate ideas rather than relying on Wall Street research. The process includes both top-down and bottom-up analysis, with research focusing on sectors, industries and companies benefiting from economic trends identified. Attributes sought in companies include: market expertise/dominance, strong brands, above average unit growth, strong cash flow, R&D and marketing resource, and excellent management. The portfolio consists of three types of companies:
Core Growth – often blue chip companies with the potential for stable earnings growth;
Life Cycle Change – typically mature companies undergoing positive changes such as new management;
Aggressive Growth – leading edge companies offering the potential for rapid earnings growth.
Weightings to each area are adjusted according to the stage of the economic cycle. In constructing the portfolio the managers try to avoid concentration in any sector or theme, looking to find growth uniquely in multiple industries.