About

Frontier Capital Management Company, LLC, specializes in growth and value equity investments on behalf of institutional and individual clients.

Founded

1980

Affiliate Since

2000

Headquarters

Boston

Frontier Capital Management's Products on AMG's Wealth Platform

MSSCX

Frontier Small Cap Growth Fund

Fund Detail

Philosophy and Approach

Philosophy

Frontier’s investment philosophy is based on the belief that active, fundamental research adds value to the investment process. Cornerstones to this philosophy include the belief that over time stock prices tend to follow earnings progress and that stocks must be purchased and owned at reasonable valuations. Portfolios are constructed on a bottom-up basis, one stock at a time.


Approach

Frontier’s philosophy is followed throughout the firm and across all strategies. Differences occur due to capitalization and style, rather than overall philosophy.

Business Model

  • Identify long-term favorable secular trends
  • Buy businesses with long-term competitive advantages
  • Invest in strong management teams
  • Own companies with potential for attractive returns on capital

Earnings Power

  • Identify catalysts to drive above-average earnings growth potential
  • Buy unrecognized “earnings power”—opportunities for sales acceleration, margin improvement, and cash flow deployment
  • Be willing to be early
  • Scrutinize cash flow and balance sheet metrics

Valuation

  • P/E Ratios: Buy stocks cheap relative to their “earnings power”
  • Price/Sales: Seek opportunities and avoid high expectations
  • Valuations need to be supported by cash flows
  • Sustainability of growth is a key consideration

Portfolio Managers

James A. Colgan

PARTNER, PORTFOLIO MANAGER

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G. Michael Novak, Jr.

PARTNER, PORTFOLIO MANAGER

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All Affiliates

AMG’s Affiliates are high-quality independent investment management firms with entrepreneurial cultures and an investment-centric focus.