Mr. Goddard: Capital Advisors was founded in 1978 in Tulsa. We manage approximately 800 million in assets, including separate accounts and a public mutual fund, the Capital Advisors Growth Fund (CIAOX). We execute a core growth philosophy in the stock market with an emphasis on large-cap and mid-cap stocks. Our investment process combines rigorous fundamental analysis with quantitative disciplines for risk management. We pride ourselves on offering traditional investment strategies, like large-cap growth in the case of the Capital Advisors Growth Fund, with unique risk-reward characteristics relative to alternatives in the marketplace.
TWST: What has it been like for your growth investing during a time of turbulence in the markets and extreme volatility?
Mr. Goddard: The Capital Advisors Growth Fund performed well relative to benchmarks over the past three years, but the pattern of returns was different. Our risk management disciplines are largely responsible for containing our portfolio volatility since the quantitative markers we track kept us cautious ahead of the worst of the bear market, while we were slower to tilt the portfolio to a more aggressive position once the market hit bottom in March. If you look at the entire period, I think most investors in the fund might be satisfied to have achieved respectable performance with lower volatility over the last few years.
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