Thornburg Core Growth Fund

Growth Investing with Both Feet on the Ground

Thornburg Core Growth Fund is a bottom-up, fundamentals-driven, flexible, and focused portfolio that includes mostly U.S. growth stocks, with the ability to invest in equities up and down the capitalization spectrum.


“We search for good businesses with promising growth prospects that trade at reasonable valuations. Our goal is to build a diversified, all-weather portfolio that will perform well in both up and down markets.”

— Greg Dunn



The fund’s flexible mandate gives us wide latitude to invest in different types of growth companies, up and down the capitalization spectrum.

A flexible mandate means little if managers choose the wrong stocks. As with other Thornburg products, our research is bottom-up, fundamentals driven, stock-by-stock.

While value managers often start from a place of valuation and decide whether a company is a good business, we tend to start from a place of growth and ask:

  • Is there a long-term growth opportunity?
  • Is it a good business?
  • Is the valuation reasonable?


Attractive growth characteristics: A large addressable market, secular tailwinds, durable competitive advantages, and a high rate of growth with operational leverage.

Good businesses: High barriers to entry, quality management, durable competitive advantages, strong market share, high and sustainable margins.

Reasonable valuation: We consider growth prospects, business models, historical valuation ranges, conduct peer valuation comparisons, and look at investor sentiment.


Exposure to each basket is roughly equal to provide optimal diversification balance:

Consistent growth companies exhibit steady earnings and revenue growth; these companies often have subscription or other recurring revenue profiles.

Growth industry leaders often have leadership positions in growing markets, sometimes with dominant market share, and tend to be larger and more established.

Emerging growth companies are typically growing rapidly, often carving out a niche in an existing market. They tend to be smaller, earlier-stage companies. We expect these companies to generate high returns over time, but with higher volatility.


From initial fundamental research, through the continuous monitoring of our investment thesis, to ongoing evaluation of business developments, we know what we own and why we own it.

We diversify through Thornburg’s proprietary basket construct, industry and sector representation, position size, market cap, and through monitoring stock-specific risks.

A core component of our risk-management process is maintaining a consistently executed sell discipline. We tend to be fast to sell a holding when a crack appears in the investment thesis.


Flexibility: The fund operates under a flexible mandate, allowing us to pursue many different types of growth stocks in many different areas.

Focus: At well under 100 holdings, Thornburg Core Growth is more focused than many domestic growth peers.

Important Information