Political strategies

Loomis Sayles Celebrates the 10th Anniversary of the Growth Equity Strategy Team’s Long/Short Growth Equity Strategy

BOSTON–(BUSINESS WIRE)–Loomis, Sayles & Company:

77.6

136

1

BILLION ASSETS UNDER

MANAGEMENT

COMBINED YEARS OF INVESTMENT

LIVE

INVESTMENT PHILOSOPHY

The EMS team

The EMS team

Backed by seven-step research

frame

As of 03/31/22

As of 03/31/22

Loomis, Sayles & Company, a subsidiary of Natixis Investment Managers, celebrates the 10th anniversary of the Loomis Sayles Long/Short Growth Equity strategy managed by the firm’s Growth Equity Strategies (GES) team.

The Long/Short Growth Equity strategy is part of a suite of equity products managed by Aziz V. Hamzaogullari, Chief Investment Officer and Founder of the Loomis Sayles GES team. The team’s $77.6 billion in assets under management also includes large-cap growth, all-cap growth, global growth and international growth strategies. The GES team’s unique alpha engine, used across all strategies, stimulates long and short idea generation by seeking to identify structurally attractive and structurally deficient businesses. The GES team’s long-term approach to private equity is underpinned by a uniquely differentiated investment philosophy and supported by a proprietary seven-step research framework. For long positions, the team seeks to invest in those few high-quality companies with sustainable competitive advantages and profitable growth only when trading at a price below the GES estimate of intrinsic value. Short selling opportunities can arise when the team’s research identifies companies that are trading at a significant premium to the intrinsic value estimate due to structural deficiencies or too high investor expectations.

Learn more about the Loomis Sayles Growth Equity Strategies team.

“The GES team has achieved a strong track record of performance across its product line where the longest track record is over 16 years. We are proud of the GES team’s passion for delivering alpha to our investors through their disciplined, long-term investment decision-making that emphasizes thorough fundamental research,” said Kevin Charleston. , CEO and President of Loomis Sayles. “We launched the Long/Short Growth Equity strategy to bring our investors the value of the team’s alpha knowledge of long and short opportunities.

Aziz Hamzaogullari, CIO and Founder of GES said: “Over a decade ago, we realized that our unique proprietary process was organically generating alpha insights into short opportunities that we weren’t able to provide to our investors in our long-only strategies. Since its inception, our Long/Short Growth Equity strategy has generated alpha on both long and short positions while simultaneously conferring hedging benefits in mild and severe market declines.

Long/Short Growth Equity Strategy $208 million in assets under management
Since initiating short exposure in 2012, the Long/Short Growth Equity Composite has achieved an annualized gross return of 9.35% (7.85% net return) with a standard deviation of 9.14% (gross) . The strategy generated 4.61% gross alpha (3.40% net alpha), of which 48% came from the strategy’s short positions and 52% from the long positions. Creation 02/01/2012 Initiation of the short exhibition 05/23/2012
The Long/Short Growth Equity strategy aims to generate favorable risk-adjusted returns over a full market cycle through a reasonably concentrated portfolio of long and short growth equity investments.
Please see the Trailing Returns, Gross and Net, section for the Loomis Sayles Long/Short Growth Equity Composite below.
See also below where we illustrate how the strategy worked and helped protect capital in quarters where the S&P 500 suffered severe declines.
Past performance is not indicative of future results.
LOOMIS SAYLES COMPOSITE ACTIONS LONG/SHORT (%)
Rolling returns (gross and net of fees) as of 03/31/2022

Gross of fees

Net Base Fee

0% Management/10%

Incentive allowance

S&P 500 50% hedged

Q1 2022

3.12

2.92

-2.26

1 year

1.64

0.85

7.79

5 years

5.49

4.31

8.05

10 years

8.18

6.75

7.32

Since the beginning of the short exposure (05/23/2012)

9:35 a.m.

7.85

7.77

Since the launch of the strategy (01/02/2012)

8.73

7.24

7.59

Data source: Loomis Sayles.

Gross returns are gross of fees and net of trading fees. Net returns are gross returns less effective management fees.

The opening of the short exposure took place on 05/23/2012, although no investors were offered the opportunity to invest on this date. Additional short positions were initiated from 04/04/2014 to 04/07/2014. Net return information for this period is based on a high water mark of an account that invested at inception (01/02/2012); using a high water mark on 2012-05-23 or 2012-06-01 would result in lower performance. Returns for multi-year periods are annualized. The fundamental net returns include the application of an effective management fee of 0% per annum and an incentive fee of 10% on positive performance for the calendar year. Net returns represent the return that would have been received by an investor who initially invested by paying a base fee and participated in all investments; it may not reflect the return realized by any particular investor.

The Long/Short Growth Equity strategy is considered an absolute return strategy. Since the structure of the strategy is typically approximately 100% long and 50% short or hedging combined, we include an S&P 500 index hedged at 50% as a benchmark for comparison purposes. artwork only.

The performance data presented represents past performance and is not a guarantee or necessarily an indication of future results.

SHORTS HAVE A DUAL ROLE IN STRATEGY
Historically, shorts have been sources of alpha while hedging the strategy

Long/Short Growth Equity Yield %

(Raw)

Long/Short Growth Equity Yield %

(Net Base Fee)

Short position return % (gross)

S&P 500 % return

Q4 2018

-0.99

-1.19

-20.86

-13.52

Q1 2020

3.2

2.75

-29.18

-19.6

Long/Short Growth Equity Strategy vs. S&P 500

Excess return (gross)

+12.53%

+22.80%

Capturing the falling market

seven%

0%

Data source: Loomis Sayles.

Gross returns are gross of fees and net of trading fees. The fundamental net returns include the application of an effective management fee of 0% per annum and an incentive fee of 10% on positive performance for the calendar year.

The periods of market decline selected are the largest quarterly declines in the S&P 500 since the launch of the strategy (01/02/2012). This analysis is dated 03/31/22 and is updated quarterly. Given that we are currently in a period of withdrawal, this analysis is subject to change as we move forward.


Important Disclosure

There is no guarantee that the investment objective will be achieved or that the strategy will generate a positive or excess return.

Any investment that has the possibility of making profits also has the possibility of losses, including loss of principal.

Indices are unmanaged and incur no fees. It is not possible to invest directly in an index.

For the most recent month-end performance, visit www.loomissayles.com.

Loomis, Sayles & Company, LP (“Loomis Sayles”) is an independent advisory firm registered under the Investment Advisers Act of 1940. For more information on this strategy and other Loomis Sayles strategies, please visit our website at www.loomissayles.com.

About risk

Equity securities are volatile and can fall significantly in response to general market and economic conditions. Foreign and emerging market securities may be subject to greater political, economic, environmental, credit, currency and information risks. Foreign securities may be subject to greater volatility than US securities due to varying degrees of regulation and limited liquidity. These risks are amplified in emerging markets. Investments in small and medium-sized companies can be more volatile than those in large companies. Growth stocks may be more sensitive to market conditions than other stocks because their prices strongly reflect future expectations. Exchange rates between the US dollar and foreign currencies may cause the value of the fund’s investments to decline.

ABOUT LOOMIS SAYLES

Since 1926, Loomis, Sayles & Company has helped meet the investment needs of institutional and mutual fund clients around the world. The company’s performance-oriented investors incorporate in-depth proprietary research and risk analysis to make informed and sound decisions. Teams of portfolio managers, strategists, research analysts and traders work together to assess market sectors and identify investment opportunities wherever they exist, within traditional asset classes or among a range of alternative investments. Loomis Sayles has the resources, foresight and flexibility to seek value far and wide in markets wide and narrow in its commitment to delivering attractive, risk-adjusted returns for clients. This rich tradition has earned Loomis Sayles the trust and respect of clients around the world, for whom it manages $335.9 billion* in assets (as of March 31, 2022).

*Includes assets of Loomis, Sayles & Co., LP and Loomis Sayles Trust Company, LLC. ($38.4 billion for the Loomis Sayles Trust Company). Loomis Sayles Trust Company is a wholly owned subsidiary of Loomis, Sayles & Company, LP

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