5-year goal in focus!
As we approach our five-year anniversary, we’re pleased to report that our goal of achieving an annualized return of around 15% (net of fees) over this period seems within reach, barring any significant market disruptions in Q4. We’re proud to be on track for these returns, especially given the challenges we’ve faced, including two bear markets and a recession. While our target is ambitious by industry standards, and we may not always hit it, this goal reflects the key objectives we strive for:
1) Generating returns in excess of the index.
2) Providing diversification from the index, which can enhance the risk profile of our clients’ overall portfolios.
3) Holding companies that are resilient enough to endure a recession.
By achieving these objectives, we aim to offer a strategy that complements a diversified portfolio and helps clients weather the inevitable market storms.
We’d like to extend our sincere thanks to our clients for their continued trust. Although our long-term returns have been strong, the path to success has included many bumps and fluctuations. Good returns are rarely achieved in a straight line.
Small-cap stocks have underperformed compared to large caps this year, but the Russell 2000 Index had a strong Q3, regaining some lost ground. While we remain slightly behind the index year-to-date, our relative performance can vary significantly, sometimes by a few percentage points in a single day. I wouldn’t be surprised if we surpass the index for the fifth consecutive calendar year, as our stocks are beginning to attract more attention. However, this will ultimately be determined in Q4, and short-term movements remain unpredictable.
I have written extensively about our largest holdings (please see the Q2 write-up for details). These companies continue to show strong progress, and we believe the market is significantly undervaluing their assets. Our confidence in these investments has only grown as new evidence supports their success. While no strategy guarantees success in each investment, it’s crucial to exit underperformers early and increase our holdings in companies that execute well. Our largest positions have grown because we’ve added to them as they delivered on their strategies and because, we believe, their stock prices are not yet reflecting their full potential.
Thank you for your continued trust and confidence. We’re always here to answer any questions—please don’t hesitate to call or email.
Zack
RSAward-Winning Financial Advising
Robertson Stephens paid no fee to obtain recognition but has paid licensing fees to reference its appearances on the Newsweek, USA Today, and FA Magazine rankings lists. See Awards Disclosures
Questions
How Does Robertson Stephens Manage Investments?
We build personalized portfolios based on your specific situation, including your risk tolerance, tax sensitivity, liquidity needs, and values. We use a disciplined approach that balances long-term growth strategies with short-term opportunities when they make sense. We continuously monitor your investments and adjust as needed, drawing on institutional-quality research and due diligence.
What Is Robertson Stephens’ Investment Philosophy?
Our investment philosophy focuses on protecting and growing your wealth through a disciplined, diversified approach that’s tailored to your specific situation — your risk tolerance, tax needs, and values. We blend long-term strategic investing with tactical opportunities when they make sense, using both public and private markets where appropriate.
Is Robertson Stephens Fee-Only, Fee-Based, or Commission-Based?
We work on a fee-based model, which means our compensation is tied to the assets we manage for you rather than commissions on products we sell. This aligns our interests with yours — when your portfolio grows, we do better too. The specific fee structure varies by client based on your situation and needs.
More from Robertson Stephens
Small Cap Q3 2024 Commentary
Zack Perry
5-year goal in focus!
As we approach our five-year anniversary, we’re pleased to report that our goal of achieving an annualized return of around 15% (net of fees) over this period seems within reach, barring any significant market disruptions in Q4. We’re proud to be on track for these returns, especially given the challenges we’ve faced, including two bear markets and a recession. While our target is ambitious by industry standards, and we may not always hit it, this goal reflects the key objectives we strive for:
1) Generating returns in excess of the index.
2) Providing diversification from the index, which can enhance the risk profile of our clients’ overall portfolios.
3) Holding companies that are resilient enough to endure a recession.
By achieving these objectives, we aim to offer a strategy that complements a diversified portfolio and helps clients weather the inevitable market storms.
We’d like to extend our sincere thanks to our clients for their continued trust. Although our long-term returns have been strong, the path to success has included many bumps and fluctuations. Good returns are rarely achieved in a straight line.
Small Caps Bounce Back in Q3
Small-cap stocks have underperformed compared to large caps this year, but the Russell 2000 Index had a strong Q3, regaining some lost ground. While we remain slightly behind the index year-to-date, our relative performance can vary significantly, sometimes by a few percentage points in a single day. I wouldn’t be surprised if we surpass the index for the fifth consecutive calendar year, as our stocks are beginning to attract more attention. However, this will ultimately be determined in Q4, and short-term movements remain unpredictable.
I have written extensively about our largest holdings (please see the Q2 write-up for details). These companies continue to show strong progress, and we believe the market is significantly undervaluing their assets. Our confidence in these investments has only grown as new evidence supports their success. While no strategy guarantees success in each investment, it’s crucial to exit underperformers early and increase our holdings in companies that execute well. Our largest positions have grown because we’ve added to them as they delivered on their strategies and because, we believe, their stock prices are not yet reflecting their full potential.
Thank you for your continued trust and confidence. We’re always here to answer any questions—please don’t hesitate to call or email.
Zack
Robertson Stephens paid no fee to obtain recognition but has paid licensing fees to reference its appearances on the Newsweek, USA Today, and FA Magazine rankings lists. See Awards Disclosures
Questions
How Does Robertson Stephens Manage Investments?
We build personalized portfolios based on your specific situation, including your risk tolerance, tax sensitivity, liquidity needs, and values. We use a disciplined approach that balances long-term growth strategies with short-term opportunities when they make sense. We continuously monitor your investments and adjust as needed, drawing on institutional-quality research and due diligence.
What Is Robertson Stephens’ Investment Philosophy?
Our investment philosophy focuses on protecting and growing your wealth through a disciplined, diversified approach that’s tailored to your specific situation — your risk tolerance, tax needs, and values. We blend long-term strategic investing with tactical opportunities when they make sense, using both public and private markets where appropriate.
Is Robertson Stephens Fee-Only, Fee-Based, or Commission-Based?
We work on a fee-based model, which means our compensation is tied to the assets we manage for you rather than commissions on products we sell. This aligns our interests with yours — when your portfolio grows, we do better too. The specific fee structure varies by client based on your situation and needs.
More from Robertson Stephens
Market Leadership Rotates as Small Caps Gain and Tech Slips
Market leadership rotated as small caps and value beat tech, Treasury yields fell below 5% and housing weakened further. Stuart Katz on what it means.
The Jimmy Buffett Estate Debacle: A Lesson in Choosing Co-Trustees
The Jimmy Buffett estate fight over a $275 million marital trust shows how co-trustee plans break down, and what families can build in to prevent it.
Economic Commentary: Suppress Your Excitement
Economists view moves to suppress the inflation index as temporary. Jeanette Garretty on why real affordability means cutting structural costs, too.
Disclosure and Source
Investment advisory services offered through Robertson Stephens Wealth Management, LLC (“Robertson Stephens Wealth Management, LLC”), an SEC-registered investment advisor. Registration does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. This material is for general informational purposes only and should not be construed as investment, tax or legal advice. It does not constitute a recommendation or offer to buy or sell any security, has not been tailored to the needs of any specific investor, and should not provide the basis for any investment decision. Please consult with your Advisor prior to making any investment decisions. The information contained herein was compiled from sources believed to be reliable, but Robertson Stephens Wealth Management, LLC does not guarantee its accuracy orcompleteness.Information, views and opinions are current as ofthe date ofthis presentation,are based on the information available atthe time, and are subjectto change based on marketand other conditions. Robertson Stephens Wealth Management, LLC assumes no duty to update this information. Unlessotherwise noted, any individual opinions presented are those of the author and not necessarilythose of Robertson Stephens Wealth Management, LLC. Performancemaybe compared to several indices.Indices are unmanaged and reflect the reinvestment of all income or dividends but do notreflectthe deduction of any fees orexpenses which would reduce returns. A complete list of RobertsonStephens Investment Office recommendations overthe previous 12 months is available upon request. Past performance does not guarantee future results.Forward-looking performance objectives,targets or estimates are not guaranteed and may notbe achieved.Investing entailsrisks, including possible loss of principal. Alternative investments are speculative and involve substantialrisks including significant loss of principal, high illiquidity, long time horizons, unevengrowth rates,high fees, onerous tax consequences,limitedtransparency and limited regulation.Alternative investmentsare not suitable for all investors and are only available to qualified investors. Please referto the private placement memorandumfor a complete listing anddescription ofterms and risks. Thismaterial is an investment advisory publication intended forinvestment advisoryclients and prospective clients only. Robertson Stephens Wealth Management, LLC onlytransactsbusiness in states in which it is properlyregistered or is excluded orexempted fromregistration.A copy of Robertson Stephens Wealth Management, LLC’ current written disclosure brochure filed with the SEC which discusses, amongotherthings, Robertson Stephens Wealth Management, LLC’business practices, services and fees, isavailable through the SEC’s website at:www.adviserinfo.sec.gov. ©2025 RobertsonStephensWealth Management, LLC. All rights reserved. Robertson Stephens Wealth Management, LLC is a registered trademark ofRobertson Stephens Wealth Management, LLC in the United States and elsewhere. © 2025 Robertson Stephens Wealth Management, LLC. Wealth Management, LLC. All rights reserved. Robertson Stephens Wealth Management, LLC is a registered trademark of Robertson Stephens Wealth Management, LLC in the United States and elsewhere.
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