Small/Mid Cap Equity Manager of 2022: Congress Asset Management Company

Congress Asset Management Company is a winner of the 2022 Manager of the Year award thanks to what Envestnet said was the “strong and competitive” performance of its Congress Mid Cap Growth, which highlighted its ability to outperform during a period when the market was up and the Congress strategy “faced stylistic headwinds.”

The strategy was up 30.6% last year, topping the Russell Mid Cap Growth Index by 17.9%, Envestnet pointed out. Its performance ranked in the sixth percentile of the Morningstar Mid Cap Growth separate account universe that includes 232 strategies, Envestnet said.

Historically, the Congress strategy has been able to outperform on the upside, and the “magnitude of outperformance was outstanding and buttressed by solid stock picking,” according to Envestnet. The only sector that detracted from its relative performance was real estate, but that was just slightly, Envestnet said.

The Congress team has been extremely stable, according to Envestnet, noting the team hasn’t seen any significant turnover in the last five years.

“What set us apart in 2021” from peers was that “we were able to negotiate a volatile year and post strong returns versus our benchmark while keeping portfolio risk and portfolio turnover low,” according to Todd Solomon, Congress senior vice president and portfolio manager of Mid Cap Growth.

“Our commitment to profitable companies with strong, free cash flows, solid balance sheets, attractive valuation and compelling governance was a key factor in our success,” he said.

Last year was challenging because of factors that included the political landscape and the ongoing pandemic, according to Solomon. The debate over Federal Reserve action, fiscal policy under the new presidential administration and the “continued overhang of COVID put stress on company results and limited their ability to make solid forecasts,” Solomon explained.