Mid-cap U.S. manager looks beyond the quarterly earnings

TD fund's Brian Berghuis focuses on the long-term potential of a business.

Diana Cawfield 25 January, 2018 | 6:00PM

Brian Berghuis credits the strong track record of TD U.S. Mid-Cap Growth to looking beyond the numbers. "I spend probably 90% of my time on the qualitative aspect, "meaning how we perceive the quality of the management," says Berghuis, a vice-president and portfolio manager at Baltimore-based T. Rowe Price. "We're investing in companies where business models are proven. You don't get to several hundred stores in the United States if the business model doesn't work."

Assessing management is the first step in the stock-selection process for the $1.5-billion fund, which has a 4-star Morningstar Rating in the U.S. Small/Mid Cap Equity category.

The next step is looking for companies that have a competitive advantage. That could be low operating costs, a well-known brand, or anything else that might lead to higher return on capital over the long run. The fund's average holding period for a company is about three years, says Berghuis, "but we have lots of companies that we've owned for a decade or more."

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Casey's General Stores Inc223.32 USD1.33
Textron Inc58.54 USD1.05
The Cooper Companies Inc399.52 USD-0.12

About Author

Diana Cawfield

Diana Cawfield  Diana Cawfield is an award-winning writer who has been a regular Morningstar contributor since 2000. Her numerous publication credits include the Toronto StarAdvisor's Edge and Chatelaine, as well as the Canadian Securities Institute's online educational services.

© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies