Our goal is to outperform the market over a full investment cycle. For our Small Cap strategy we measure the market by the Russell 2000 Index and seek to outperform it by at least 200 basis points, annualized, net of fees. For our Large Cap strategy branded under the name Diversified Equity, we measure the market by the Russell 1000 Index and seek to outperform it by at least 150 basis points, annualized, net of fees.
Three distinguishing characteristics of TAMRO's investment philosophy are (i) requiring that every company we invest in possess a Sustainable Competitive Advantage, as defined by TAMRO; (ii) focusing on TAMRO's three investment categories: Leaders, Laggards or Innovators, not just growth or value; and (iii) calculating that each newly initiated position has at least a 3:1 ratio of Upside-reward to Downside-risk.