page assignment hero

Our investment approach

Since 1939, Principal Edge has been a leading manager of U.S. equity strategies, specializing in the management of large, mid, and SMID-cap equities. Located in Seattle Washington, the team at Principal Edge uses a quality first approach, has the patience to invest at attractive valuations, and maintains a long-term investment horizon.

Our Equity Income and SMID Equity Income strategies invest in companies that pay a meaningful dividend and have the potential to grow that dividend over time.
Our Capital Appreciation and Concentrated Mid Cap strategies prefer companies that pay dividends and/or buyback stock over time.
  • Quality first

    Focused on selecting companies with sustainable competitive advantages, strong management teams, and financial strength.

  • Profitability matters

    The team screens for companies with revenue growth in excess of industry, return on invested capital greater than weighted average cost of capital, and positive free cash flow.

  • Long-term perspective

    We wait for market overreaction to short-term noise to purchase great companies and own them for years.

Need more information? Contact us.

Explore our featured equity strategies.

To help you effectively balance risk and return, we make available equity strategies that have historically delivered attractive returns.
Capital Appreciation
Focused on selecting high-quality companies across the size and style spectrum.
Concentrated Mid Cap
Focused on selecting high-quality mid-cap companies.
Equity Income
Focused on selecting high-quality, large-cap dividend growing companies.
SMID Equity Income
Focused on selecting high-quality, SMID dividend growing companies.

Sustainable investing approach

When it comes to sustainable investing, we empower investors by offering choice, confidence, and flexibility.

We believe the best companies can do it all—operate profitably, invest in their business, and return capital to shareholders. We see ESG characteristics as an important risk factor and are more likely to avoid companies where there are ESG-related concerns.

  • We evaluate each company based on their competitive advantage, complexity, financial strength, potential for profitability and shareholder friendliness. There are also three ESG factors that we highly value, monitor, and advocate for: diversity, carbon emissions, and pay equity.

  • Our proprietary qualitative industry ranking approach evaluates these ESG factors within the context of each sector, recognizing leaders and laggards.

  • As part of our industry review process, our team regularly engages with company management to determine their level of ESG commitment and to encourage disclosure.

Get to know our equity investment teams.

Our distinct and highly experienced equity investment teams are committed to delivering consistent investment results.
Principal Aligned

Long-term, bottom-up fundamental investors managing U.S. large-cap and mid-cap equity portfolios with a specific preference for high-quality businesses run by owner-operators.

Principal Dynamic Growth

Specializes in the management of small-, SMID-, and mid-cap U.S. growth equities using a bottom-up, growth-oriented approach to find good companies that are getting stronger and exceeding investor expectations.

Principal Equities

With experienced resources around the world, combining global insights insights with local knowledge to deliver a wide range of fundamental and systematic specialized equity investment solutions spanning all regions and market caps.

Principal Origin

Uses a systematic, evidence-based approach to build global equity portfolios focused on companies that exhibit a balance of positive capital management, undervaluation, earnings revisions, and share price trend.

Get the latest insights.

Past performance does not guarantee future results.

Equity markets are subject to many factors, including economic conditions, government regulations, market sentiment, local and international political events, and environmental and technological issues that may impact return and volatility. Small and mid-cap stocks may have additional risks including greater price volatility. Dividends are not guaranteed.

ESG integration is considered across all actively managed asset classes, with the approach determined by each investment group’s process. This information is specific to the strategies managed by the individuals providing this content and various investment teams across Principal may have differing views of this approach.

Principal Edge is an investment team within Principal Global Investors.