High Quality Select Equity


We seek to invest in high quality companies with a demonstrated history of consistent growth and earnings stability.  The portfolio is managed with a fundamental, bottom–up investment process, looking for businesses with innovative models, quality management, strong free cash flow, and high returns on invested capital.  Historically, this process has produced a diversified portfolio that exhibits solid up-market capture, minimized participation in declining markets, reduced volatility, and high active share.

Key Stats

Asset Class: Large Cap Equity
Primary Index: Russell 1000® Index
Inception Date: October 1, 2006
Strategy Assets: $1.0 bn
Holdings Range: 25 - 40
Mkt. Cap at Purchase: >$3 bn
Max Position Sizes: 10%
Industry Constraint: 25%
Max Non-US: 25%
Max Use of Cash: 15%
3-Yr. Avg. Turnover: 17%



Downside Capture
Since Inception



Active Share



3-Yr. Avg. Turnover


Investment Performance (%)

as of September 30, 2022

  Quarter 1 Yr 3 Yr 5 Yr 10 Yr Since Inception
High Quality Select Equity (Gross)  -2.19 -15.12 4.50 9.77 11.70 10.25
High Quality Select Equity (Net)  -2.34 -15.63 3.88 9.12 10.98   9.52
Russell 1000® Index  -4.61 -17.22 7.95 9.00 11.60   8.57

Periods greater than one year are annualized. Composite inception date is 10/1/06. Composite data is based upon all discretionary institutional accounts eligible for inclusion in the Composite for the periods shown. Performance is calculated in US dollars and reflects the reinvestment of all income and capital gains. Net of fee returns reflect the deduction of the highest applicable annual management fee of 0.70% from inception through December 31, 2017 and 0.60% beginning January 1, 2018, applied monthly.


Up, Down, Cumulative Market Capture (%)

October 1, 2006 – September 30, 2022
Net of Fees

Annualized. Up-Down Market Capture measures composite performance (net of fees) relative to index during periods when index has risen/fallen.
Source: eVestment.


Sector Diversification (%)

as of September 30, 2022

  High Quality Select Equity Russell 1000® Index Over / Under Weight
Communication Services 4.9 7.8 -2.9
Consumer Discretionary 15.3 11.6 3.7
Consumer Staples 5.0 6.4 -1.4
Energy 0.0 4.6 -4.6
Financials 15.4 11.4 4.0
Health Care 11.9 14.7 -2.8
Industrials 6.2 8.6 -2.4
Information Technology 34.5 26.0 8.5
Materials 6.7 2.7 4.0
Real Estate 0.0 3.2 -3.2
Utilities 0.0 3.0 -3.0

Sector Diversification and Top Ten Holdings are based on the equity-only assets of a representative client portfolio managed according to this strategy.
Sources: Atlanta Capital, eVestment, FactSet.

Sector Diversification (%)

as of September 30, 2022


Top Ten Holdings

(%) of representative portfolio

White Mountains Insurance Group 9.4
Fiserv 7.1
TJX Companies 7.0
Global Payments 5.7
CDW Corp. 5.6
Markel Corporation 5.1
Alphabet CL C 4.9
Gartner 4.8
O'Reilly Automotive 4.6
GoDaddy CL A 4.1
TOTAL 58.1%


Chip Reed, CFA

Chip Reed, CFA

Portfolio Manager

Bill Bell, CFA

Bill Bell, CFA

Portfolio Manager

Matt Hereford, CFA

Matt Hereford, CFA

Portfolio Manager



Fact Sheet

High Quality Select Equity

September 30, 2022
Read More

Investment Commentary

High Quality Select Equity

September 30, 2022
Read More

This information is for illustrative purposes only and should not be considered investment advice or a recommendation to purchase or sell any specific security or invest in a specific strategy. It should not be solely relied upon in making a decision to invest in the strategy. Active Share measures how much the portfolio holdings differ from the Russell 1000® Index holdings.  It does not serve as a proxy for excess return or manager skill. The Earnings Growth, Earnings Stability, Portfolio Metrics, Sector Diversification, and Top Ten Holdings identified are based on the equity-only assets (cash and cash equivalents are excluded) of a representative client portfolio managed according to this strategy; annual turnover is based on the average turnover for the last three calendar years of a representative client portfolio for the strategy. All statistics are subject to change; individual client results may vary. The specific securities identified are not representative of all of the securities purchased, sold or recommended for advisory clients. Actual holdings will vary for each client and there is no guarantee that a particular client’s account will hold any or all of the securities listed. It should not be assumed that any of the securities were or will be profitable. For a complete list of all recommendations made by Atlanta Capital for the High Quality Select Equity Composite during the preceding 12 months, please contact the Performance Department at 404-876-9411. Performance during certain periods reflects strong stock market performance that is not typical and may not be repeated.

The Russell 1000® Index includes the largest 1000 companies in the Russell 3000® and measures the performance of the large cap U.S. equity universe. The index is unmanaged and does not incur management fees, transaction costs or other expenses associated with separately managed accounts. It is not possible to directly invest in an index.

Investing entails risks and there can be no assurance that Atlanta Capital will achieve profits or avoid incurring losses. Past performance does not predict future results.

Atlanta Capital is part of Morgan Stanley Investment Management, the asset management division of Morgan Stanley.