Frontier Capital Management

About

About

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

AMG Funds From This Firm

MSSCX

Frontier Small Cap Growth Fund

Seeks long-term capital appreciation by investing in a portfolio of small cap stocks.

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Approach & Philosophy

Philosophy and Approach

Our 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

Fund Managers

Fund Managers

James A. Colgan

James A. Colgan

Senior Vice President

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G. Michael Novak, Jr.

G. Michael Novak, Jr.

Senior Vice President

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