Fund Overview

  • Value-based approach to growth investing
  • Long-only portfolio of 30-50 stocks
  • Position sizes range from 1% to 5% at cost
  • Benchmarked to the Russell 1000® Growth Index and the S&P 500® Index
Institutional Shares Investor Shares Retirement Shares
Inception 11/1/2011 3/1/2017 3/1/2017
Gross Expense Ratio 0.90% 1.25% 0.80%
Net Expense Ratio 0.71% 1.07% 0.63%
Minimum Purchase $25,000 $1,000 None

Mar Vista Investment Partners, LLC (“Mar Vista” or the “Adviser”), the Fund’s investment adviser, has contractually agreed to waive a portion of its fees and reimburse certain expenses for the Fund to limit the total annual fund operating expenses (excluding taxes, leverage (i.e., any expenses incurred in connection with borrowings made by the Fund), interest (including interest incurred in connection with bank and custody overdrafts), brokerage commissions and other transactional expenses, dividends or interest on short positions, acquired fund fees and expenses or extraordinary expenses such as litigation) (collectively, “Excludable Expenses”)) to 0.63%, 0.71% and 1.07% for Retirement Shares, Institutional Shares and Investor Shares, respectively, through at least February 28, 2025. Thereafter, the expense limitation agreement may be terminated by or with the consent of the Board of Trustees (the “Board of Trustees” or the “Board”) of Manager Directed Portfolios (the “Trust”). Mar Vista may request recoupment of previously waived fees and paid expenses from the Fund for 36 months from the date such fees and expenses were waived or paid, if such reimbursement will not cause the Fund’s total expense ratio to exceed the expense limitation in place at the time of the waiver and/or expense payment and the expense limitation in place at the time of recoupment. To the extent the Fund or a share class of the Fund incurs Excludable Expenses, Total Annual Fund Operating Expenses After Fee Waivers/Expense Reimbursements may be greater than 0.63%, 0.71% or 1.07% for Retirement Shares, Institutional Shares and Investment Shares, respectively.

Investment Approach

Our value-based approach to growth investing is centered around our philosophy that capital preservation is as important as capital appreciation. This principle has been and will be the cornerstone for our differentiated performance metrics. The six attributes of our framework that we think will allow us to deliver differentiated returns over our time horizon include:

  • Our definition of “risk” – we believe risk is defined by the probability of permanent capital loss, not price volatility.
  • Our definition of “growth” – we believe growth in shareholder value, not revenue or earnings, is the primary driver in stock prices over the long-term.
  • Our “margin of safety” mandate – we believe differentiated returns are generated by owning wide-moat compounding machines only when their stock prices are materially below our estimate of intrinsic value and represent minimal downside risk.
  • Our scenario analysis identifies asymmetric opportunities – our estimates of intrinsic value are based on future free cash flow but our analysis incorporates a range of scenarios to assess the likely range of outcomes and identifies asymmetric opportunities.
  • Our understanding of behavioral finance – as long as humans are trading stocks, there will be persistent behavioral biases that we will attempt to exploit.
  • Our concentrated portfolio, in the context of a sound process, increases the odds of superior risk-adjusted returns.

Average Annual Total Returns – as of 3/31/24

  1 Year 3 Years 5 Years 10 Years Since
MVSIX 24.69% 7.13% 12.25% 11.63% 13.24%
R1000G Index 39.00% 12.50% 18.52% 15.98% 16.98%
S&P 500 Index 29.88% 11.49% 15.05% 12.96% 14.69%

*MVSIX Inception Date: 11/1/2011
Performance quoted represents past performance for the Fund’s institutional class shares and there is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Current performance may be higher or lower than the performance data quoted above. Please call 855-870-3188 to obtain current and the most recent month-end performance data.

Performance for periods over one year is annualized.

Sector Diversification –as of 3/31/24

 Strategic Growth Fund Russell 1000® Growth
Communication Services 8.92 12.05
Consumer Discretionary 9.76 14.95
Consumer Staples 3.09 4.06
Energy 0.48
Financials 8.70 6.41
Health Care 9.96 10.64
Industrials 14.87 5.84
Information Technology 36.55 43.96
Materials 3.22 0.72
Real Estate 3.58 0.84
Utilities 0.06
Cash 1.35

As a percentage of the portfolio.  Subject to change at any time.

Top Ten Holdings

Strategic Growth Fund (MVSIX) – as of 3/31/24

Holding Industry Holding %
Microsoft Information Technology 6.29%
TransDigm Group Industrials 5.17% Consumer Discretionary 5.16%
Walt Disney Company Communication Services 4.63%
Alphabet Class C Communication Services 4.29%
Visa Financials 3.68%
Adobe Information Technology 3.62%
Johnson & Johnson Healthcare 3.59%
American Tower Real Estate 3.58%
Microchip Technology Information Technology 3.30%

Past performance does not guarantee future results.

Information provided with respect to the Fund’s Holdings and Weightings are subject to change at any time and are not a recommendation to buy or sell any security. The Fund discloses its quarterly top ten holdings on its website within 45 business days after the quarter-end. The quarter-end portfolio holdings for the Fund will remain posted on the Fund’s website until the following quarter-end portfolio holdings are posted. The benchmark is the Russell 1000 Growth Index, which is defined as an unmanaged, capitalization weighted index of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. Index returns include dividends and/or interest income and do not reflect fees or expenses. Unlike the Fund, which periodically maintains a cash position, the Russell 1000 Growth Index is fully invested. Investors cannot invest in an index.

The Fund invests in growth companies which can be more sensitive to the company’s earnings and more volatile than the stock market in general. The Fund may also invest in foreign securities which are subject to risks including currency fluctuations, economic and political change and differing accounting standards. The Fund may invest in derivatives and initial public offerings (IPOs), which are highly volatile. Additional risk information may be found in the prospectus.
Investors should carefully consider the Fund’s investment objective, risks, charges and expenses before investing. For a prospectus, which contains this and other important information about the Fund, please call 855-870-3188. Please read the prospectus carefully before investing or sending money.

Investments involve risk, principal loss is possible.

The Mar Vista Strategic Growth Fund is distributed by Quasar Distributors, LLC. Mar Vista Investment Partners is the adviser to the Fund.