Page 29 - Investment Advisor July/August 2022

Small/Mid Cap Equity Manager of the Year

Congress Asset Management Company
Congress Mid Cap Growth

C ongress Asset Management

Company is a winner of the 2022
Manager of the Year award thanks to
what Envestnet said was the “strong
and competitive” performance of its
Congress Mid Cap Growth, which
highlighted its ability to outperform
during a period when the market was
up and the Congress strategy “faced
stylistic headwinds.”
The strategy was up 30.6% last year,
topping the Russell Mid Cap Growth
Index by 17.9%, Envestnet pointed out.
Its performance ranked in the sixth
percentile of the Morningstar Mid Cap
Growth separate account universe that
includes 232 strategies, Envestnet said.
Historically, the Congress strategy has
been able to outperform on the upside, Todd Solomon with strong current and historical finan-
and the “magnitude of outperformance Title: Manager cial characteristics that have the ability
was outstanding and buttressed by solid Years with firm: 22 to outperform over a full market cycle
stock picking,” according to Envestnet. helped us avoid some of the more vola-
The only sector that detracted from its Years in financial services: 29 tile names that were temporarily pushed
relative performance was real estate, higher due to short-term euphoria.”
but that was just slightly, Envestnet said. Investment/asset class focus: Challenges that he expects for the
The Congress team has been extreme- Mid Cap Growth Equities rest of 2022 and 2023 include increased
ly stable, according to Envestnet, not- global tensions, high gas prices, rising
ing the team hasn’t seen any significant Asset management firm: Congress interest rates and “faltering consumer
turnover in the last five years. Asset Management Company confidence” that have collectively “led
“What set us apart in 2021” from peers Year firm founded: 1985 to a tough start to 2022,” he said.
was that “we were able to negotiate a Number of employees: 62 “Markets are also grappling with
volatile year and post strong returns ver- growth rates that are slower than last
sus our benchmark while keeping port- AUA as of Dec. 31, 2021: $20.8 year’s robust growth that benefited
folio risk and portfolio turnover low,” billion overall; $7.8 billion for Mid from slower economic activity in 2020,”
according to Todd Solomon, Congress Cap Growth Strategy alone he noted. “In other words, we are lag-
senior vice president and portfolio man- ging last year’s growth, which was arti-
ager of Mid Cap Growth. ficially high because 2020 was affected by COVID and was
“Our commitment to profitable companies with strong, free artificially low. We believe that long-term superior stock
cash flows, solid balance sheets, attractive valuation and com- performance is generated by companies consistently growing
pelling governance was a key factor in our success,” he said. earnings and cash flow.”
Last year was challenging because of factors that included Asked how it felt to win a Manager of the Year award, he
the political landscape and the ongoing pandemic, according responded: “We are always humbled that clients trust us to
to Solomon. The debate over Federal Reserve action, fiscal manage their assets and we always appreciate feedback on
policy under the new presidential administration and the whether we are performing to expectations. Recognition from
“continued overhang of COVID put stress on company results a valued partner such as Envestnet reinforces our belief that
and limited their ability to make solid forecasts,” he said. we can be a successful long term ally in working with clients to
However, he added: “Our long-term focus on companies achieve their long-term financial goals.” — Jeff Berman

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