POI- Ralph Wanger

POI- Ralph Wanger - Thomas Arnost Ashim Chopra Collin...

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Thomas Arnost Ashim Chopra Collin Eckles Nicole Faye Ralph Wanger Ralph Wanger is one of the greatest investors of our era. During the time of his professional investing career, which began in 1960 and recently ended upon retirement in 2003, Wanger achieved an annualized return of 16.3%, whereas the S&P 500 only returned 12.1% annually during that time. He is a graduate of Massachusetts Institute of Technology and is best known for starting his own investment fund, called Acorn Fund, in 1977. Ralph Wanger’s investment philosophy is relatively simple: value investing in successful small-cap companies that will benefit from current macroeconomic trends. As simple as this sounds philosophy sounds, there are more detailed nuances in his philosophy which must also be considered, and this philosophy is the main determining factor in Wanger’s specific investment style and techniques. Ralph Wanger built his theme-driven investment philosophy upon the belief that small cap companies offer the most growth potential over a long-term horizon of four to five years. Those companies that offer the greatest potential for “home-run” returns are those will be the indirect beneficiaries of a long-term macroeconomic trend. This style of downturn investing – focusing on companies that are financial sound market leaders within industries that will be the next to benefit from current growth industries – is the smarter, and more lucrative investment philosophy, Wanger believes. Wanger’s rational for focusing on small versus large cap stocks is predicated on some of his basic assumptions on the herd mentality of Wall Street analysts and institutional portfolio managers. Groupthink often drives current markets trends on Wall Street. Most analysts and large institutional investors choose not to focus on small cap stocks, either for fear of going against the trend or peers or because the parameters of
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POI- Ralph Wanger - Thomas Arnost Ashim Chopra Collin...

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