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First Quarter 2013
One Grand Central Place
60 East 42nd
Street, 43rd
Floor
New York, NY 10165
Organization & Resources
 Bennett Lawrence Management, LLC (BLM) is a 100% employee owned registered
investment advisor, focused solely on domestic growth stock investments dedicated
to building clients’ wealth through fundamental research with superior client service.
Bennett Lawrence Management, LLC
$562 million1
– assets under management
Traditional Investment Strategies
All Cap Growth Equity
Midcap Growth Equity
Small Cap Growth Equity
1. Preliminary as of March 31, 2013 (in US$).
Firm Overview
Long / Short Strategies
Absolute Return
All Cap Growth Equity
(Domestic and Offshore)
Small Cap Growth Equity
The Bennett Lawrence Investment Team
Average Industry Experience
22 Years
Average Tenure at BLM
10 Years
Investment Professional Function Industry Experience Credentials
Van Schreiber
Chief Portfolio Manager
Managing Member
48 years
MBA, New York University
BS, Williams College
W. Alexander Ely
Portfolio Manager
Member
21 years BA, University of New Hampshire
Dina Pliotis
Consumer Analyst
Member
25 years
MBA, New York University
BS, Union College
Nathan A. Mahrer, CFA
Technology Analyst
Member
19 years
MBA, George Washington University
BS, Colorado School of Mines
Jason P. Gupta
Health Care Analyst
Member
10 years
MBA, The Wharton School
BA, University of Michigan
Amy Zhang
Industrial, Energy &
Basic Materials Analyst
11 years
MA, Dartmouth College
BA, Fudan University
Philosophy & Process
All Cap, Midcap and Small Cap Growth Equity
Investment Philosophy
Earnings growth drives stock prices.
We believe that identifying major demand trends early
and investing in competitively advantaged companies
benefiting from these trends, will allow us to achieve our
objective of long-term capital appreciation.
Investment Process
General
Economic
Outlook
Identify
Dynamic
Themes
Invest in
Competitively
Advantaged
Companies
Manage Risk
 Develop expectations
for economic growth,
inflation, interest rates
and overall U.S.
corporate profit growth
 Establish minimum
earnings growth rate for
portfolios
 Thematic investment
approach that is fully
adaptable
 Identify at an early stage,
major demands trends
that are creating powerful
investment opportunities
 First Mover Advantage
 New Product Capability
 Leading Industry Position
 Strong Management Team
 Healthy Financial Condition
 Analyze stock, sector and
portfolio exposure
 Comprehensive review of
benchmark and factor risk
Portfolio Management
Summary
 Growth
 Approximately 40 securities
 Sector exposure limited to high growth segments of the market
 Client-specific preferences reflected within portfolios
 Sector diversification, strict selection and sell disciplines, robust factor
and comparative benchmark analysis
 Individual positions are thoroughly analyzed by at least two investment
professionals before being added to the universe
 Positions are generally trimmed if they appreciate to 6% of total portfolio
 Decline of 15% from cost triggers a position review
 Limited discovery potential
 Competitors disappoint
 Change in company fundamentals
Investment Style 
Portfolio Structure 
Risk Management 
Company Selection 
Sell Discipline 
Risk Management
Factor Analysis Comparative Benchmark Analysis
 Sophisticated software for factor analysis:
– Momentum
– Beta
– Volatility
– Growth
 Momentum is generally our largest factor risk:
– Utilize Axioma risk model to:
• Optimize entry points
• Highlight extended positions
• Identify correlated risks
• Assist in navigating turns in the market
 Portfolio characteristics versus benchmark:
– Valuation
– Beta
– Momentum
– Quality (ROE)
 Benchmark performance attribution:
– Top/bottom performing benchmark holdings
(weighted & un-weighted)
– Top/bottom performing industry/sector groups
– Factor attribution related to benchmark performance
 Portfolio weightings versus benchmark:
– Industry/sector comparison
– Top weightings per sector
Why Bennett Lawrence?
 Firm:
– Established in 1995
– Senior management team, founders of BLM, in place over 15 years
– Central investment philosophy utilized for over 25 years (strategy employed since 1987)
 Resources:
– Over 20 years’ average experience among team of 6 seasoned investment professionals
– Significant internal research capabilities:
• Uncover unique, high growth investment opportunities by conducting our own primary
research
• Field work, channel checks, surveys, industry conferences, one-on-one meetings, Wall
Street analysts and industry experts
– Robust risk management procedures
 Incentives:
– Employee ownership allows for teamwork, accountability and succession
– Investment team is compensated to make sound investment decisions for clients
– Organization is focused solely on domestic growth stock investments
Product Update
 S&P 500 yield is greater than 10-year treasury yield
 Allocations to equities are at historic lows
 Massive amounts of liquidity
 Interest rates are at ultra low levels
 Decrease in Systematic Risk:
 Unemployment stabilizing
 Housing and autos are recovering
 China growth rates improving
 Europe stabilizing
Constructive Outlook for Equity Markets
Equipment
&
Machinery
Specialty Retail
Big Ticket Items
Software as a Service
Health Care Services
&
Providers
Biotechnology
Pharmaceuticals
Housing
 Technology
Investment Trends & Themes
Linking Exciting Growth Opportunities
 Capital Spending  Health Care
 Housing & Related
The above information is preliminary as of 3/31/13 and based on the Small Cap Growth Composite.
 Big Ticket & Specialty Retail
Cyclical Growth: Move from Preservation to Appreciation
Massive amounts of Pent up Demand
 Corporations and Governments have
improved balance sheets and are beginning
to reinvest capital:
- Pent up demand for replacement projects
- Increased infrastructure spending
- Rebounding industrial demand
Examples:
- Equipment and machinery
 Individuals are purchasing things they want
vs. things they need
- Increased economic visibility and decreased
systematic risk
- Increase in consumer confidence and spending
- Shift in consumer buying behavior:
- 2008 to 2009: Staples
- 2010 to 2011: Retail
- 2012 to 2013: Big ticket items
Examples:
- New homes / home improvements
- Cars, Boats, Motorcycles
Secular Growth: Innovation Creating Opportunity
 Software as a Service
- Shift from users seeking data from the internet to
companies using the internet to find data about its
users
- Cloud Computing: Increased need for storage,
security, processing and manipulation of data
- Companies seeking to monetize viewership
- Continued increase in wireless users
- Shift to smart devices (phones and tablets)
resulting in a need for stronger network capabilities
 Biotechnology:
- Investment in late stage companies providing a
service or a drug meeting a previously unmet ne
- We seek companies with:
- Massive markets
- Proven data
- Premier product(s) already introduced in the
market
- Seeking to capitalize on peak revenues of premier
product(s) of such companies
- Decrease in systematic risk should compound
growth multiples
17.5
8.2
7.3
14.8
17.8
16.4
7.2
6.2
13.2
14.5 14.8
9.0
7.0
15.1
19.0
0
2
4
6
8
10
12
14
16
18
20
YTD 1 year 3 year 5 year Since Inception*
Return (%)
BLMSmall Cap Grow th Composite (gross of fees) BLMSmall Cap Grow th Composite (net of fees) Russell 2000 Grow th Index
Historical Performance vs. Russell 2000 Growth Index
Small Cap Growth Composite1
1. Preliminary as of 3/31/13. Performance for periods greater than 1 year is annualized.
*Inception 4/1/04.
The information contained on this page is supplemental to the GIPS compliant composite
contained on the final pages of this presentation.
BLM Small Cap Growth Composite vs. Russell 2000 Growth Index
Sector weightings and top 10 holdings
Security Sector
% Net
Assets1
United Rentals, Inc. Industrials 4.83
Endologix, Inc. Health Care 4.60
Community Health Systems,
Inc.
Health Care 4.41
Manitowoc Company, Inc. Industrials 4.35
Dana Holding Corporation Consumer Discretionary 4.01
Cavium Inc. Information Technology 3.99
Aruba Networks, Inc. Information Technology 3.83
Splunk, Inc. Information Technology 3.68
Meritage Homes Corporation Consumer Discretionary 3.61
Brunswick Corporation Consumer Discretionary 3.55
Total 40.87
1. Preliminary as of 3/31/13.
Russell 2000 Growth Index sectors in which BLM had no weighting are not shown.
The information contained on this page is supplemental to the GIPS compliant composite
contained on the final pages of this presentation.
BLM Small Cap Growth Composite1
vs. Russell 2000 Growth Index
Energy
BLM Small Cap 2.7%
Russell 2000 5.7%
Consumer Staples
BLM Small Cap 0.8%
Russell 2000 4.6%
Financials
BLM Small Cap 3.3%
Russell 2000 7.9%
Healthcare
BLM Small Cap 20.7%
Russell 2000 20.5%
Industrials
BLM Small Cap 26.1%
Russell 2000 18.2%
Information
Technology
BLM Small Cap 21.7%
Russell 2000 21.4%
Consumer
Discretionary
BLM Small Cap 22.8%
Russell 2000 15.5%
Materials
BLM Small Cap 1.4%
Russell 2000 5.1%
Cash
BLM Small Cap 0.6%
BLM Small Cap
Growth Composite1
Russell 2000
Growth Index
P/E 2013 (ex-neg)2
28.1x 24.6x
2013/2012 EPS Growth Rate2
50.6% 24.4%
2013 PEG Ratio 0.56 1.01
Weighted Avg. Market Cap $2,415 MM $1.750 MM
Median Market Cap $2,337 MM $677 MM
1. Preliminary as of 3/31/13. Inception 4/1/04.
2. EPS Growth and P/E figures are weighted.
3. Annualized.
The information contained on this page is supplemental to the GIPS compliant composite
contained on the final pages of this presentation.
BLM Small Cap
Growth Composite
(3-Year)1
Russell 2000
Growth Index
Alpha 2.12 -
Beta 1.05 1.00
R-Squared 0.91 1.00
Sharpe Ratio3
0.70 0.65
Standard Deviation3
24.98 22.58
BLM Small Cap Growth Composite vs. Russell 2000 Growth Index
Portfolio Characteristics
BLM Small Cap Growth Composite
Peer Group Rankings
Source: PSN Enterprise
BENNETT LAWRENCE SMALL CAP GROWTH
QUARTILE RANKING BAR
PSN SMALL CAP GROWTH
PERIODS ENDING MARCH 31, 2013
-5
0
5
10
15
20
25
30
RATEOFRETURN
3/2012-3/2013 3/2010-3/2013 3/2008-3/2013 3/2004-3/2013
HIGH (0.05) 22.35 19.86 13.85 11.08
FIRST QUARTILE 16.26 17.64 11.30 9.09
MEDIAN 13.10 15.59 9.45 7.89
THIRD QUARTILE 9.94 13.46 7.40 6.85
LOW (0.95) 2.59 8.16 4.28 3.80
MEAN 12.94 15.39 9.23 7.79
VALID COUNT 168 163 151 121
Bennett Lawrence Small Cap Growth
Russell 2000 Growth
3/2012-3/2013 3/2010-3/2013 3/2008-3/2013 3/2004-3/2013
VALUE RANK VALUE RANK VALUE RANK VALUE RANK
18.96 10 17.50 26 8.23 67 7.27 65
14.52 39 14.75 60 9.04 52 7.00 71
Appendix
Bennett Lawrence Small Cap Growth Composite
*Performance returns are preliminary as of March 31, 2013.
• Returns are time weighted. The Small Cap Growth Composite includes all fully discretionary accounts under management. Figures are not audited and are subject
to change. Individual investor results will vary.
• Performance results are net of commissions paid on securities transactions and margin interest paid, and include dividends and interest earned.
• Net returns reflect the deduction from the gross returns of an annual 1% management fee charged on a quarterly basis, which represents the highest advisory fee.
Bennett Lawrence Management, LLC
• The information provided in this report should not be considered a recommendation to purchase or sell any particular security. There is no assurance that any of the
investments identified herein will remain in portfolios managed by Bennett Lawrence Management, LLC (BLM) or that information provided herein will remain the
same at the time you receive this report. The investments identified do not represent all of the investments purchased, sold or held by portfolios managed by BLM.
It should not be assumed that investments were or will be profitable.
• Portfolio characteristics are calculated by Bennett Lawrence Management, LLC, FactSet and PSN-Effron Enterprises, Inc.
Russell 2000 Growth Index & S&P 500 Index
• The figures for the Russell Index and S&P 500 Index include dividends received and their reinvestment. The index returns do not, however, reflect any brokerage
commissions or management fees that might be incurred in actually investing in the securities representing these indexes. The Russell Investment Group is the
source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group. Index
returns are calculated by the Frank Russell Company and Standard and Poor’s.
• An investor cannot directly invest in an index.
PSN Universe
• The PSN universe is comprised of a group of composites/products with a similar investment objective. Performance is calculated by PSN. Performance is gross of
fees. Gross returns do not reflect the deduction of investment advisory fees. The deduction of such fees or other expenses will reduce a client’s return.
Disclosures
Past performance is not a guarantee of future results.
Small Cap Composite GIPS Compliant Presentation
Annual Disclosure
Composite Assets Annual Performance Returns
Year
End
Total Firm
Assets
(millions)
USD
(millions)
Number
of
Accounts
Composite
Gross
Composite
Net
Russell
2000
Growth
Composite
Dispersion
2011 503 16 3 0.26% -0.75% -2.91% 0.00%
2010 558 37 3 24.57% 23.39% 29.09% 0.00%
2009 782 51 5 34.98% 33.72% 34.47% 0.33%
2008 832 43 5 -54.68% -55.23% -38.54% 0.07%
2007 1,802 232 6 25.95% 24.76% 7.05% 0.29%
2006 1,753 180 5 4.75% 3.72% 13.35% N.A.
2005 2,007 33 1 12.45% 11.35% 4.15% N.A.
YTD 2004* 1,423 33 1 14.84% 14.02% 8.26% N.A.
N.A. - Information is not statistically meaningful due to an insufficient number of portfolios in the composite for the entire year.
* YTD 2004 performance is from April 1, 2004 through December 31, 2004.
Small Cap Composite contains fully discretionary small cap accounts and for comparison purposes is measured against the Russell 2000 Growth Index.
Bennett Lawrence Management, LLC (BLM) claims compliance with the Global Investment Performance Standards (GIPS®
) and has prepared and presented this report in compliance with
the GIPS standards. BLM has been independently verified for the periods October 1, 1997 through December 31, 2007 by Ashland Partners & Company LLP.
Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures
are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. The Small Cap
Composite has been examined for the periods April 1, 2004 through December 31, 2007. The verification and performance examination reports are available upon request.
BLM is an independent investment adviser registered under the Investment Advisers Act of 1940. The Small Cap Composite was created April 2004. A list of composite descriptions is
available upon request.
Returns are based on fully discretionary accounts under management, including those accounts no longer with the firm. The U.S. Dollar is the currency used to express performance returns.
Returns are net of commissions on securities transactions and margin interest paid, and includes dividends and interest earned. Gross returns are gross of management fees paid. Net returns
reflect the deduction from the gross returns of an annual 1% management fee schedule charged on a quarterly basis, which represents the highest advisory fee. Actual management fees
incurred by clients may vary. Past performance is not indicative of future results.
The annual composite dispersion presented is an asset-weighted standard deviation calculated for the accounts in the composite the entire year. Additional information regarding the policies
for calculating and reporting returns is available upon request.
The composite policy prior to January 1, 2011 required the temporary removal of any portfolio incurring a client initiated significant cash flow where there is a 50% or greater inflow or a
10% or greater outflow of the portfolio assets. The significant cash inflow or outflow generated multiple transactions that would not fully represent the strategy. The temporary removal of
such an account to a non-discretionary composite occurred at the beginning of the calendar quarter in which the significant cash flow occurs and the account re-entered the composite at the
beginning of the calendar quarter following a full calendar quarter after the cash flow. The composite policy now requires the temporary removal of any portfolio incurring a client initiated
significant cash flow where there is a 25% or greater inflow or outflow of the portfolio assets. The significant cash inflow or outflow would generate multiple transactions that would not
fully represent the strategy. The temporary removal of such an account to a non-discretionary composite occurs at the beginning of the calendar quarter in which the significant cash flow
occurs and the account re-enters the composite at the beginning of the calendar quarter following, at minimum, 30 calendar days after the cash flow. Additional information regarding the
treatment of significant cash flows is available upon request.
The figures for the Russell 2000 Growth Index include dividends received and their timely reinvestment. The Index returns do not however, reflect any brokerage commissions or
management fees that might be incurred in actually investing in the securities representing this index. The Index returns are calculated by the Frank Russell Company.
At December 31, 2011, the three-year annualized ex-post standard deviation of the Small Cap Composite’s gross returns and the Russell 2000 Growth Index are 1.86% and 1.91%,
respectively.
Small Cap Composite GIPS Compliant Presentation
Annual Disclosure

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1 q13 small cap flipbook

  • 1. First Quarter 2013 One Grand Central Place 60 East 42nd Street, 43rd Floor New York, NY 10165
  • 3.  Bennett Lawrence Management, LLC (BLM) is a 100% employee owned registered investment advisor, focused solely on domestic growth stock investments dedicated to building clients’ wealth through fundamental research with superior client service. Bennett Lawrence Management, LLC $562 million1 – assets under management Traditional Investment Strategies All Cap Growth Equity Midcap Growth Equity Small Cap Growth Equity 1. Preliminary as of March 31, 2013 (in US$). Firm Overview Long / Short Strategies Absolute Return All Cap Growth Equity (Domestic and Offshore) Small Cap Growth Equity
  • 4. The Bennett Lawrence Investment Team Average Industry Experience 22 Years Average Tenure at BLM 10 Years Investment Professional Function Industry Experience Credentials Van Schreiber Chief Portfolio Manager Managing Member 48 years MBA, New York University BS, Williams College W. Alexander Ely Portfolio Manager Member 21 years BA, University of New Hampshire Dina Pliotis Consumer Analyst Member 25 years MBA, New York University BS, Union College Nathan A. Mahrer, CFA Technology Analyst Member 19 years MBA, George Washington University BS, Colorado School of Mines Jason P. Gupta Health Care Analyst Member 10 years MBA, The Wharton School BA, University of Michigan Amy Zhang Industrial, Energy & Basic Materials Analyst 11 years MA, Dartmouth College BA, Fudan University
  • 5. Philosophy & Process All Cap, Midcap and Small Cap Growth Equity
  • 6. Investment Philosophy Earnings growth drives stock prices. We believe that identifying major demand trends early and investing in competitively advantaged companies benefiting from these trends, will allow us to achieve our objective of long-term capital appreciation.
  • 7. Investment Process General Economic Outlook Identify Dynamic Themes Invest in Competitively Advantaged Companies Manage Risk  Develop expectations for economic growth, inflation, interest rates and overall U.S. corporate profit growth  Establish minimum earnings growth rate for portfolios  Thematic investment approach that is fully adaptable  Identify at an early stage, major demands trends that are creating powerful investment opportunities  First Mover Advantage  New Product Capability  Leading Industry Position  Strong Management Team  Healthy Financial Condition  Analyze stock, sector and portfolio exposure  Comprehensive review of benchmark and factor risk
  • 8. Portfolio Management Summary  Growth  Approximately 40 securities  Sector exposure limited to high growth segments of the market  Client-specific preferences reflected within portfolios  Sector diversification, strict selection and sell disciplines, robust factor and comparative benchmark analysis  Individual positions are thoroughly analyzed by at least two investment professionals before being added to the universe  Positions are generally trimmed if they appreciate to 6% of total portfolio  Decline of 15% from cost triggers a position review  Limited discovery potential  Competitors disappoint  Change in company fundamentals Investment Style  Portfolio Structure  Risk Management  Company Selection  Sell Discipline 
  • 9. Risk Management Factor Analysis Comparative Benchmark Analysis  Sophisticated software for factor analysis: – Momentum – Beta – Volatility – Growth  Momentum is generally our largest factor risk: – Utilize Axioma risk model to: • Optimize entry points • Highlight extended positions • Identify correlated risks • Assist in navigating turns in the market  Portfolio characteristics versus benchmark: – Valuation – Beta – Momentum – Quality (ROE)  Benchmark performance attribution: – Top/bottom performing benchmark holdings (weighted & un-weighted) – Top/bottom performing industry/sector groups – Factor attribution related to benchmark performance  Portfolio weightings versus benchmark: – Industry/sector comparison – Top weightings per sector
  • 10. Why Bennett Lawrence?  Firm: – Established in 1995 – Senior management team, founders of BLM, in place over 15 years – Central investment philosophy utilized for over 25 years (strategy employed since 1987)  Resources: – Over 20 years’ average experience among team of 6 seasoned investment professionals – Significant internal research capabilities: • Uncover unique, high growth investment opportunities by conducting our own primary research • Field work, channel checks, surveys, industry conferences, one-on-one meetings, Wall Street analysts and industry experts – Robust risk management procedures  Incentives: – Employee ownership allows for teamwork, accountability and succession – Investment team is compensated to make sound investment decisions for clients – Organization is focused solely on domestic growth stock investments
  • 12.  S&P 500 yield is greater than 10-year treasury yield  Allocations to equities are at historic lows  Massive amounts of liquidity  Interest rates are at ultra low levels  Decrease in Systematic Risk:  Unemployment stabilizing  Housing and autos are recovering  China growth rates improving  Europe stabilizing Constructive Outlook for Equity Markets
  • 13. Equipment & Machinery Specialty Retail Big Ticket Items Software as a Service Health Care Services & Providers Biotechnology Pharmaceuticals Housing  Technology Investment Trends & Themes Linking Exciting Growth Opportunities  Capital Spending  Health Care  Housing & Related The above information is preliminary as of 3/31/13 and based on the Small Cap Growth Composite.  Big Ticket & Specialty Retail
  • 14. Cyclical Growth: Move from Preservation to Appreciation Massive amounts of Pent up Demand  Corporations and Governments have improved balance sheets and are beginning to reinvest capital: - Pent up demand for replacement projects - Increased infrastructure spending - Rebounding industrial demand Examples: - Equipment and machinery  Individuals are purchasing things they want vs. things they need - Increased economic visibility and decreased systematic risk - Increase in consumer confidence and spending - Shift in consumer buying behavior: - 2008 to 2009: Staples - 2010 to 2011: Retail - 2012 to 2013: Big ticket items Examples: - New homes / home improvements - Cars, Boats, Motorcycles
  • 15. Secular Growth: Innovation Creating Opportunity  Software as a Service - Shift from users seeking data from the internet to companies using the internet to find data about its users - Cloud Computing: Increased need for storage, security, processing and manipulation of data - Companies seeking to monetize viewership - Continued increase in wireless users - Shift to smart devices (phones and tablets) resulting in a need for stronger network capabilities  Biotechnology: - Investment in late stage companies providing a service or a drug meeting a previously unmet ne - We seek companies with: - Massive markets - Proven data - Premier product(s) already introduced in the market - Seeking to capitalize on peak revenues of premier product(s) of such companies - Decrease in systematic risk should compound growth multiples
  • 16. 17.5 8.2 7.3 14.8 17.8 16.4 7.2 6.2 13.2 14.5 14.8 9.0 7.0 15.1 19.0 0 2 4 6 8 10 12 14 16 18 20 YTD 1 year 3 year 5 year Since Inception* Return (%) BLMSmall Cap Grow th Composite (gross of fees) BLMSmall Cap Grow th Composite (net of fees) Russell 2000 Grow th Index Historical Performance vs. Russell 2000 Growth Index Small Cap Growth Composite1 1. Preliminary as of 3/31/13. Performance for periods greater than 1 year is annualized. *Inception 4/1/04. The information contained on this page is supplemental to the GIPS compliant composite contained on the final pages of this presentation.
  • 17. BLM Small Cap Growth Composite vs. Russell 2000 Growth Index Sector weightings and top 10 holdings Security Sector % Net Assets1 United Rentals, Inc. Industrials 4.83 Endologix, Inc. Health Care 4.60 Community Health Systems, Inc. Health Care 4.41 Manitowoc Company, Inc. Industrials 4.35 Dana Holding Corporation Consumer Discretionary 4.01 Cavium Inc. Information Technology 3.99 Aruba Networks, Inc. Information Technology 3.83 Splunk, Inc. Information Technology 3.68 Meritage Homes Corporation Consumer Discretionary 3.61 Brunswick Corporation Consumer Discretionary 3.55 Total 40.87 1. Preliminary as of 3/31/13. Russell 2000 Growth Index sectors in which BLM had no weighting are not shown. The information contained on this page is supplemental to the GIPS compliant composite contained on the final pages of this presentation. BLM Small Cap Growth Composite1 vs. Russell 2000 Growth Index Energy BLM Small Cap 2.7% Russell 2000 5.7% Consumer Staples BLM Small Cap 0.8% Russell 2000 4.6% Financials BLM Small Cap 3.3% Russell 2000 7.9% Healthcare BLM Small Cap 20.7% Russell 2000 20.5% Industrials BLM Small Cap 26.1% Russell 2000 18.2% Information Technology BLM Small Cap 21.7% Russell 2000 21.4% Consumer Discretionary BLM Small Cap 22.8% Russell 2000 15.5% Materials BLM Small Cap 1.4% Russell 2000 5.1% Cash BLM Small Cap 0.6%
  • 18. BLM Small Cap Growth Composite1 Russell 2000 Growth Index P/E 2013 (ex-neg)2 28.1x 24.6x 2013/2012 EPS Growth Rate2 50.6% 24.4% 2013 PEG Ratio 0.56 1.01 Weighted Avg. Market Cap $2,415 MM $1.750 MM Median Market Cap $2,337 MM $677 MM 1. Preliminary as of 3/31/13. Inception 4/1/04. 2. EPS Growth and P/E figures are weighted. 3. Annualized. The information contained on this page is supplemental to the GIPS compliant composite contained on the final pages of this presentation. BLM Small Cap Growth Composite (3-Year)1 Russell 2000 Growth Index Alpha 2.12 - Beta 1.05 1.00 R-Squared 0.91 1.00 Sharpe Ratio3 0.70 0.65 Standard Deviation3 24.98 22.58 BLM Small Cap Growth Composite vs. Russell 2000 Growth Index Portfolio Characteristics
  • 19. BLM Small Cap Growth Composite Peer Group Rankings Source: PSN Enterprise BENNETT LAWRENCE SMALL CAP GROWTH QUARTILE RANKING BAR PSN SMALL CAP GROWTH PERIODS ENDING MARCH 31, 2013 -5 0 5 10 15 20 25 30 RATEOFRETURN 3/2012-3/2013 3/2010-3/2013 3/2008-3/2013 3/2004-3/2013 HIGH (0.05) 22.35 19.86 13.85 11.08 FIRST QUARTILE 16.26 17.64 11.30 9.09 MEDIAN 13.10 15.59 9.45 7.89 THIRD QUARTILE 9.94 13.46 7.40 6.85 LOW (0.95) 2.59 8.16 4.28 3.80 MEAN 12.94 15.39 9.23 7.79 VALID COUNT 168 163 151 121 Bennett Lawrence Small Cap Growth Russell 2000 Growth 3/2012-3/2013 3/2010-3/2013 3/2008-3/2013 3/2004-3/2013 VALUE RANK VALUE RANK VALUE RANK VALUE RANK 18.96 10 17.50 26 8.23 67 7.27 65 14.52 39 14.75 60 9.04 52 7.00 71
  • 21. Bennett Lawrence Small Cap Growth Composite *Performance returns are preliminary as of March 31, 2013. • Returns are time weighted. The Small Cap Growth Composite includes all fully discretionary accounts under management. Figures are not audited and are subject to change. Individual investor results will vary. • Performance results are net of commissions paid on securities transactions and margin interest paid, and include dividends and interest earned. • Net returns reflect the deduction from the gross returns of an annual 1% management fee charged on a quarterly basis, which represents the highest advisory fee. Bennett Lawrence Management, LLC • The information provided in this report should not be considered a recommendation to purchase or sell any particular security. There is no assurance that any of the investments identified herein will remain in portfolios managed by Bennett Lawrence Management, LLC (BLM) or that information provided herein will remain the same at the time you receive this report. The investments identified do not represent all of the investments purchased, sold or held by portfolios managed by BLM. It should not be assumed that investments were or will be profitable. • Portfolio characteristics are calculated by Bennett Lawrence Management, LLC, FactSet and PSN-Effron Enterprises, Inc. Russell 2000 Growth Index & S&P 500 Index • The figures for the Russell Index and S&P 500 Index include dividends received and their reinvestment. The index returns do not, however, reflect any brokerage commissions or management fees that might be incurred in actually investing in the securities representing these indexes. The Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group. Index returns are calculated by the Frank Russell Company and Standard and Poor’s. • An investor cannot directly invest in an index. PSN Universe • The PSN universe is comprised of a group of composites/products with a similar investment objective. Performance is calculated by PSN. Performance is gross of fees. Gross returns do not reflect the deduction of investment advisory fees. The deduction of such fees or other expenses will reduce a client’s return. Disclosures Past performance is not a guarantee of future results.
  • 22. Small Cap Composite GIPS Compliant Presentation Annual Disclosure Composite Assets Annual Performance Returns Year End Total Firm Assets (millions) USD (millions) Number of Accounts Composite Gross Composite Net Russell 2000 Growth Composite Dispersion 2011 503 16 3 0.26% -0.75% -2.91% 0.00% 2010 558 37 3 24.57% 23.39% 29.09% 0.00% 2009 782 51 5 34.98% 33.72% 34.47% 0.33% 2008 832 43 5 -54.68% -55.23% -38.54% 0.07% 2007 1,802 232 6 25.95% 24.76% 7.05% 0.29% 2006 1,753 180 5 4.75% 3.72% 13.35% N.A. 2005 2,007 33 1 12.45% 11.35% 4.15% N.A. YTD 2004* 1,423 33 1 14.84% 14.02% 8.26% N.A. N.A. - Information is not statistically meaningful due to an insufficient number of portfolios in the composite for the entire year. * YTD 2004 performance is from April 1, 2004 through December 31, 2004. Small Cap Composite contains fully discretionary small cap accounts and for comparison purposes is measured against the Russell 2000 Growth Index. Bennett Lawrence Management, LLC (BLM) claims compliance with the Global Investment Performance Standards (GIPS® ) and has prepared and presented this report in compliance with the GIPS standards. BLM has been independently verified for the periods October 1, 1997 through December 31, 2007 by Ashland Partners & Company LLP. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. The Small Cap Composite has been examined for the periods April 1, 2004 through December 31, 2007. The verification and performance examination reports are available upon request. BLM is an independent investment adviser registered under the Investment Advisers Act of 1940. The Small Cap Composite was created April 2004. A list of composite descriptions is available upon request. Returns are based on fully discretionary accounts under management, including those accounts no longer with the firm. The U.S. Dollar is the currency used to express performance returns. Returns are net of commissions on securities transactions and margin interest paid, and includes dividends and interest earned. Gross returns are gross of management fees paid. Net returns reflect the deduction from the gross returns of an annual 1% management fee schedule charged on a quarterly basis, which represents the highest advisory fee. Actual management fees incurred by clients may vary. Past performance is not indicative of future results.
  • 23. The annual composite dispersion presented is an asset-weighted standard deviation calculated for the accounts in the composite the entire year. Additional information regarding the policies for calculating and reporting returns is available upon request. The composite policy prior to January 1, 2011 required the temporary removal of any portfolio incurring a client initiated significant cash flow where there is a 50% or greater inflow or a 10% or greater outflow of the portfolio assets. The significant cash inflow or outflow generated multiple transactions that would not fully represent the strategy. The temporary removal of such an account to a non-discretionary composite occurred at the beginning of the calendar quarter in which the significant cash flow occurs and the account re-entered the composite at the beginning of the calendar quarter following a full calendar quarter after the cash flow. The composite policy now requires the temporary removal of any portfolio incurring a client initiated significant cash flow where there is a 25% or greater inflow or outflow of the portfolio assets. The significant cash inflow or outflow would generate multiple transactions that would not fully represent the strategy. The temporary removal of such an account to a non-discretionary composite occurs at the beginning of the calendar quarter in which the significant cash flow occurs and the account re-enters the composite at the beginning of the calendar quarter following, at minimum, 30 calendar days after the cash flow. Additional information regarding the treatment of significant cash flows is available upon request. The figures for the Russell 2000 Growth Index include dividends received and their timely reinvestment. The Index returns do not however, reflect any brokerage commissions or management fees that might be incurred in actually investing in the securities representing this index. The Index returns are calculated by the Frank Russell Company. At December 31, 2011, the three-year annualized ex-post standard deviation of the Small Cap Composite’s gross returns and the Russell 2000 Growth Index are 1.86% and 1.91%, respectively. Small Cap Composite GIPS Compliant Presentation Annual Disclosure

Editor's Notes

  1. Outperformed the benchmark average for the Quarter, 3 year, 5 year and since inception time periods.
  2. Outperformed the benchmark average for the Quarter, 3 year, 5 year and since inception time periods.
  3. Outperformed the benchmark average for the Quarter, 3 year, 5 year and since inception time periods.