Portfolio manager spotlight: Kayne Anderson Rudnick Investment Management

Although the stocks of large companies like Amazon and Alphabet have been among the market leaders since last year, in recent months they’ve started to lose some of their luster. In their place, small company stocks have assumed the top spot for outsized performance. The reasons some of the market’s biggest returns have come from some of its smallest companies include the recently passed tax overhaul and stronger earnings. Those tailwinds, along with an out-of-the-box stock-picking strategy, have helped Azzad’s small cap-growth portfolio manager Kayne Anderson Rudnick (KAR) stand out over the last quarter. “Our goal is to achieve excellent long-term investment results by owning a handful of businesses with enduring competitive protections purchased at attractive prices,” says KAR portfolio manager Todd Beiley, CFA, in a recent client note. “We employ thorough research in an attempt to understand the advantages and vulnerabilities of a business. We do not attempt to predict movements in the stock market or the economy, but instead we seek to understand companies and their worth so that we are in a position to recognize attractive prices when they arise.” Beiley and colleague Jon Christensen, CFA, co-manage Azzad’s small-cap growth portfolio, which has been a standout performer