Kayne Anderson Rudnick Investment Management LLC

Investment Strategy

KAR focuses on building high-conviction, low-turnover portfolios of high-quality businesses that exhibit enduring competitive advantages, excellent management, and exceptional economics. The investment approach involves rigorous fundamental research to identify companies with low business risk, consistent and profitable growth, high returns on capital, strong free cash flow, and little to no debt, purchasing these at attractive valuations. KAR's philosophy emphasizes investing in companies considered the 'next generation of blue chips,' aiming for above-average risk-adjusted returns through quality at a reasonable price and maintaining concentrated portfolios engineered for higher quality, faster growth, and better value than market indices. The strategy applies consistently across all capitalization styles and features low turnover and independent stock selection.