PORTFOLIO PROFILE: Large-Cap Core Growth Portfolio

Established: January 1, 1990
Portfolio Managers: Gerry Sparrow
Ownership: Privately, employee-owned
Style: Large-Cap Core Growth

Sparrow Portfolio Characteristics:

Average Number of Postions: 20
Turnover: Less than 50%
Appropriate Benchmark: S&P 500
Investment Objective: Long-Term Capital Appreciation
Category: Large-Cap Core

 

Sparrow Portfolio Criteria:

Sparrow believes a portfolio composed of growth stocks that are primarily large capitalization and are fully diversified across all major economic sectors could provide investment returns that exceed market averages.

Sparrow invests primarily in stocks that demonstrate high and sustainable growth prospects. Called a Core Growth strategy, this investment approach seeks stocks that will demonstrate superior long-term returns compared to general market indexes. Occasionally, Sparrow will hold a stock for a longer period of time even if near term momentum weakens, due to our belief in the stock’s long-term potential and low valuation relative to future prospects.

To identify potential opportunities, Sparrow searches both domestic and foreign markets, as well as multiple market sectors. Sparrow considers all market capitalizations with a bias toward large capitalizations. Sparrow’s portfolios tend to resemble the capitalization mix found in general stock market indexes, such as the S&P 500; but Sparrow maintains the flexibility to invest in growth opportunities at any capitalization size.

All stocks are equally weighted at the time of initial purchase. No more than 5% of our holdings are invested in any one security at the time of initial purchase. No more than 20% of our holdings are invested in foreign securities (ADRs).

If no appropriate stocks are available, cash equivalents are held. All sector weightings fall within 50% and 150% of the S&P 500 weightings.

Sparrow Portfolio Sector Weightings (as of 12/31/2009)

Consumer Staples & Healthcare 32%
Financial 11%
Basic Industry & Energy 21%
Industrials 11%
Technology 9%
Consumer Discretionary 11%
Telecom Services & Utilities 5%

S&P 500 Sector Weightings (as of 12/31/2009)

Consumer Staples & Healthcare 27%
Financial 13%
Basic Industry & Energy 15%
Technology 18%
Industrials 10%
Consumer Discretionary 9%
Telecom Services & Utilities 8%

Sparrow Portfolio Representative Holdings (as of 12/31/2009)

Altria Group
Anixter International
Coca-Cola Company
Constellation Energy Corp
Dell
Eaton Vance
Genesee & Wyoming
JPMorgan Chase & Co
MDC Holdings
McDonalds Corp
Monsanto
Occidental Petroleum
Pepsico
Petroleo Brasileiro
Philip Morris International
United Technology Corporation
United States Steel
V F Corp