Separately Managed Accounts
Goldman Sachs Growth Strategy Profile
Goldman Sachs Asset Management’s Growth strategy is based on the belief that wealth is
created through the long-term ownership of growing businesses. With $28.5 billion* in assets
under management, our team has managed growth portfolios successfully through almost three
decades of changing market environments. By identifying high quality business franchises,
purchasing them at what we believe are attractive prices and owning them for the long-term,
the team has generated excess returns from the intended source: strong stock selection.
Investment Objective
Goldman Sachs Asset Management’s Growth strategy seeks to identify high-quality
companies that can sustain attractive growth for decades through first-hand
fundamental research. By investing in high-quality businesses that we believe are
strategically positioned for long-term growth, we seek to:
쐍 Deliver strong absolute returns to our clients over time
쐍 Provide superior performance to the growth indices, the broad market and
other growth managers on a consistent basis through investments in high quality
growth businesses
쐍 Derive excess return through superior stock selection
쐍 Manage risk through disciplined portfolio construction and in-depth knowledge of
our companies
쐍 Consistently apply our proven long-term philosophy, strategy and process
Investment Philosophy
Goldman Sachs Asset Management Growth Team’s investment philosophy is that
wealth is created through the long-term ownership of a growing business. Our
investment philosophy has been tested and proven through changing market
conditions since 1981. Our strategy is differentiated by our dedicated 18-person team
of industry experts, 27-year history — and long-term investment perspective. The
strategy is based on three principles:
1. Buy the business: Throughout the investment process, we view each purchase as if
we were private investors and were going to buy the entire business and own it for
many years. This keeps us focused on the fundamentals of the business over the
long term. We act as long-term investors in the business, not short-term traders of
the stock.
*As of 3/1/08
Separately Managed Accounts
2. Buy a high-quality growth business: We attempt to invest in companies that meet
our criteria for a high-quality growth investment. Companies should have some, if
not all, of the following characteristics:
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Established brand name
Dominant market share
Favorable demographic trends
Free cash flow
A defensible niche (mid-cap companies)
Predictable, sustainable growth advantage
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Pricing power
Recurring revenue stream
Long product life-cycle
Excellent management
High return on invested capital
Enduring competitive advantage
3. Buy at an attractive valuation: We seek to purchase the companies in our portfolio
at what we believe are attractive valuations relative to the long-term growth of the
business. Within this framework, we pay attention to valuation when making
investment decisions.
Strategy Benefits
쐍 An experienced investment team
18-person investment team with 27-year track record of successfully managing
growth portfolios through a variety of market cycles and environments.*
쐍 Broad, deep research capability
Investment team organized by industry with research efforts spanning all market
caps. This allows us to leverage a comprehensive knowledge base across the market
cap spectrum and evaluate companies within the context of the entire industry.
쐍 Industry focused research approach
While most mid cap growth managers base investment decisions purely on their
assessment of companies within the mid cap range, our team is aligned by industry
rather than by market capitalization. We leverage a comprehensive knowledge base
across the market cap spectrum and evaluate companies within the context of the
entire industry. We believe successful investors must understand all parts of an
industry’s “food chain,” since mid cap companies frequently interact with large cap
companies as co-marketers, suppliers and competitors.
쐍 Strong, consistent, long-term performance driven by stock selection
Performance attribution reveals consistent returns and diversified sources of
performance from successful stock selection across many industries.
*As of 3/1/08
Separately Managed Accounts
Portfolio Management Team
David Shell*, CFA
Josepf Hudepohl+, CFA
Stephen Becker+, CFA
Andrew Pyne*
Portfolio Strategy
Steven Barry*
David Shell*, CFA
Gregory Ekizian*, CFA
Gregory Ekizian*, CFA
Josepf Hudepohl+, CFA
Adria Roberson+, CFA
Kumar Venkateswaran+, CFA
Stephen Becker+, CFA
Shalini Aggarwal
Scott Kolar*, CFA
Chair Investment Committee
Chief Investment Officers
Sydney Ann Goff
Noriko Watanabe
Gregory Ekizian*, CFA
Timothy Leahy+, CFA
Craig Glassner, M.D.
Media/Entertainment
Broadcasting & Cable/Satellite
Publishing/Advertising
Telecom/Wireless
Foods and Beverages
Household & Personal Care
Retailing
Gaming/Lodging
Pharmaceuticals
Biotechnology
Health Care Services
Medical Technology
Trading and Portfolio Administration
Kevin Davey, CFA
Ann Casser
Raji Manasseh
Laura Schlockman
Allyson Kaufman
Tristan Hopkins
Product Management
Scott Kolar*, CFA
Warren Fisher+, CFA, CPA1
Jeffrey Rabinowitz*, CFA
Vivek Agarwal+, CFA
Lee Kronzon, CFA
Computer Hardware/Software
Computer Services
Semiconductors
Networking/Internet
Warren Fisher+, CFA
Vivek Agarwal+, CFA
Financial Services
Banking
Specialty Finance
Insurance
Ratings Agencies
Steven Barry*
Mark Gordon+, CFA
Michael McKee+, CFA1
Lee Kronzon, CFA
Shalini Aggarwal
Energy
Cyclicals
Multi-Industry
As of 3/1/08
* Senior Portfolio Manager
+ Portfolio Manager
1 CPA license is not currently active
This presentation does not constitute an offer or solicitation to any person in any jurisdiction in which such offer or solicitation is not
authorized or to any person to whom it would be unlawful to make such offer or solicitation. Past performance is not indicative of future
results, which may vary. The value of investments and the income derived from investments can go down as well as up. Future returns are
not guaranteed, and a loss of principal may occur.
Opinions expressed are current opinions as of the date appearing in this material only. No part of this material may, without Goldman
Sachs Asset Management’s prior written consent, be (i) copied, photocopied or duplicated in any form, by any means, or (ii) distributed to
any person that is not an employee, officer, director, or authorized agent of the recipient.
Copyright © 2008 Goldman, Sachs & Co. All Rights Reserved. Date of First Use: March 1, 2008
08-5599.SA / MISGROWSP / 03-08