Dividend Growth and Consistent Management Performance is Key to this Portfolio Manager’s Philosophy

March 3, 2020

Stephen S. Lee is a founding Principal of Logan Capital Management and the firm’s Treasurer. As a manager of growth portfolios, Mr. Lee plays an active role in the security selection for the firm’s large-cap growth and mid-to-large-cap growth portfolios. He is also a member of the fixed income team. Before founding Logan Capital with his partners in 1993, Mr. Lee was employed at Mercer Capital Management and Merrill Lynch.

In this 3,517 word interview, exclusive to the Wall Street Transcript, Mr. Lee describes his firm’s investing philosophy:

“We’re really focused on high-conviction, very true-to-style strategies that can be used by advisers and clients to meet specific client needs when they’re building portfolios to meet their broader goals.

Currently, we run about $3 billion in assets under management. We’re represented by investment advisers and consultants all over the country and have seen some nice growth over the last several years.”

The focus is on consistent performance:

“Our value team really is looking for rock-solid balance sheets, good cash flow, and then they’re using, in some way, dividend yield as a measure of valuation. And our dividend performers team, again, consistent, good balance sheet, looking for dividend growth. All our strategies across the firm will consistently deliver over time a portfolio that follows that expectation…”

This leads to outsized returns on specific stock picks:

“Our best performer last year was a payroll company, Paycom Software (NYSE:PAYC). You wouldn’t expect payroll to be such a rapid grower, but what that company has done well is they’re using software as a service, or a cloud-based technology model, to really improve the way payroll services are delivered to small-to-midsized businesses.

One of the things that really struck us is that this is a management team that continues to innovate, even when they’re doing well.”

Get the complete picture by reading the entire3,517 word interview, exclusively to the Wall Street Transcript.