Today (Friday, April 15th), four AIM students will be pitching stocks at Timpani Capital Management. For a copy of the write-ups go to: http://business.marquette.edu/Content/Uploads/AIM/equity-writeups/4_15_11.pdf.
This will mark the third visit to Timpani Capital Management by AIM students. During each of the previous 'road shows' the students have received excellent feedback from the professionals at the investment firm located in northwest Milwaukee. At the beginning of the second quarter, Timpani achieved three years of operating history and has created a mutual fund offering (Frontegra Timpani Small Cap Growth Fund (Ticker: FTSGX)).
This will mark the third visit to Timpani Capital Management by AIM students. During each of the previous 'road shows' the students have received excellent feedback from the professionals at the investment firm located in northwest Milwaukee. At the beginning of the second quarter, Timpani achieved three years of operating history and has created a mutual fund offering (Frontegra Timpani Small Cap Growth Fund (Ticker: FTSGX)).
Timpani Capital Management is an institutional investment manager focused solely on small cap growth investing. The experienced senior management and investment professionals work as a team to identify investment prospects and manage client portfolios. Timpani Capital uses a consistent and proven investment philosophy and process that has been used since inception of the firm in 2008. Timpani Capital is an employee-owned Milwaukee-based boutique with over $90 Million in assets under management.
Investment Objective and Philosophy
The Frontegra Timpani Small Cap Growth Fund's goal, also referred to as it investment objective, is capital appreciation. The professionals at Timpani believe that earnings drive stock price performance. By combining fundamental research with an analysis of market sentiment, they seek to identify and exploit the perception gap that exists between a company's business strength and the market's expectation of that strength. This perception gap exists because the market is slow to react to incremental, relevant changes in a company's fundamentals.
The Frontegra Timpani Small Cap Growth Fund's goal, also referred to as it investment objective, is capital appreciation. The professionals at Timpani believe that earnings drive stock price performance. By combining fundamental research with an analysis of market sentiment, they seek to identify and exploit the perception gap that exists between a company's business strength and the market's expectation of that strength. This perception gap exists because the market is slow to react to incremental, relevant changes in a company's fundamentals.
The investment team, comprised of Brandon Nelson, CFA; Ryan Isherwood, CFA; and Michael Klenn (AIM ’10), believes that outstanding companies with superior earnings and revenue growth will outperform the market over the long term. Analysis of economic conditions and secular trends provides exploitable investment opportunities, specifically in the small capitalization sector.
Investment Strategy
The Frontegra Timpani Small Cap Growth Fund invests, under normal conditions, at least 80% of its assets in equity securities of small capitalization companies that Timpani believes have sound growth potential. Timpani uses fundamental research, focusing on companies with superior management and whose business models have a high potential for profitability. Timpani forms an investment decision based on this research and an assessment of the market’s perception of these companies.
The Frontegra Timpani Small Cap Growth Fund invests, under normal conditions, at least 80% of its assets in equity securities of small capitalization companies that Timpani believes have sound growth potential. Timpani uses fundamental research, focusing on companies with superior management and whose business models have a high potential for profitability. Timpani forms an investment decision based on this research and an assessment of the market’s perception of these companies.
Timpani defines a small capitalization company as any company with a market capitalization of less than or equal to the total market capitalization of the largest company included in the Russell 2000 Growth Index.
As of February 28, 2011, the weighted average market capitalization of the Russell 2000 Growth Index was $1.53 billion. The Fund may also invest up to 25% of its total assets in equity securities issued by foreign companies such as ADRs. Equity securities in which the Fund may invest include common stocks, preferred stocks, warrants to purchase common stocks or preferred stocks and securities convertible into common or preferred stocks, such as convertible bonds and debentures rated Baa or higher by Moody’s Investors Service or BBB or higher by Standard & Poors or Fitch Ratings.
The Fund may invest up to 100% of its total assets in cash and short-term fixed income securities as a temporary defensive position during adverse market, economic or political conditions and in other limited circumstances, such as in the case of unusually large cash inflows or redemptions. When so invested, the Fund may not achieve its investment objective.
To learn more about Timpani Capital, go to: http://www.timpanicapital.com/ or contact them at: bforsyth@frontier-partners.com. Timpani Capital Management is located at: Two Park Plaza, Suite 1020; 10850 West Park Place; Milwaukee, WI 53224.
Dr. Krause, AIM program director, added, "Timpani employs an investment philosophy and approach very similar to that followed in the AIM program. The questions that Brandon, Ryan, and Mike ask our students are useful and help our students improve their research skills. We always enjoy the opportunity to visit Timpani Capital Management."
Dr. Krause, AIM program director, added, "Timpani employs an investment philosophy and approach very similar to that followed in the AIM program. The questions that Brandon, Ryan, and Mike ask our students are useful and help our students improve their research skills. We always enjoy the opportunity to visit Timpani Capital Management."
