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Strategy differentiators

  • We invest in three types of businesses we believe are becoming better because of positive change: innovators, renovators, and pacesetters.

  • We identify them ahead of the market by recognizing potential underappreciated growth and improvement opportunities.

  • We isolate stock selection as the key driver of results, delivering style consistency over time using a comprehensive system of checks and balances.

Strategy facts

  • Manager
    Principal Equities
  • Inception
    1 April 2000
  • Index
    Russell 2000 Index
  • Targeted number of holdings
    100-250
  • Expected turnover
    < 75%
  • Investment vehicles
    IMA, U.S. Mutual Fund

Portfolio management

Principal Equities

We believe bottom-up stock selection is the most reliable and repeatable source of consistent performance. Through focused fundamental research and disciplined risk management, we strive to take advantage of persistent behavioral biases and impediments to capital flows, which often create market inefficiencies and opportunities.

PM Title
Portfolio Manager
Name
Phil K. Nordhus, CFA
32 years of experience
PM Title
Portfolio Manager
Name
Brian W. Pattinson, CFA
28 years of experience
Learn more

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Past performance does not guarantee future results.

Investing involves risk, including possible loss of principal.

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-cap stocks may have additional risks including greater price volatility.

Investment guidelines are subject to change.

Not all investment options are available in all jurisdictions. Certain vehicles have not been registered with the United States Securities and Exchange Commission under the United States Securities Act of 1933 and may not be directly or indirectly offered or sold in the United States or to any United States person.

The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index.

Principal Equities is an investment team within Principal Global Investors.