High-Quality Compounders With Both Pricing Power And Idiosyncratic Growth
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Touchstone Investments11 FollowersFollow5ShareSavePlay(8min)CommentsSummaryThe Touchstone Mid Cap Growth Fund outperformed its benchmark, the Russell Midcap® Growth Index, for the quarter ended September 30, 2025.From a factor perspective, the Fund's overweight exposure to size was a relative tailwind to performance, offsetting a headwind from being underweight volatility.Consumer Discretionary was the largest source of relative gains.Industrials was the largest detractor from relative performance over the quarter.Given tariffs and uncertainty, we continue to be focused on high-quality compounders with both pricing power and idiosyncratic growth. Ciprian Alexandru/iStock via Getty Images The following segment was excerpted from the Touchstone Mid Cap Growth Fund Q3 2025 Commentary.
The Touchstone Mid Cap Growth Fund (TEGAX) (Class A Shares, Load Waived) outperformed its benchmark, the Russell Midcap® Growth Index, for the quarterThis article was written byTouchstone Investments11 FollowersFollowAt Touchstone Investments, we recognize that not all mutual fund companies are created equal. Our commitment to being Distinctively Active means the employment of a fully integrated and rigorous process for identifying and partnering with asset managers who sub-advise our mutual funds and advocating a robust approach to portfolio construction that either uses standalone active strategies or serves as a complement to passive strategies. That is the power of Distinctively Active. Touchstone Funds are offered nationally through intermediaries including broker-dealers, financial planners, registered investment advisors and institutions by Touchstone Securities, Inc. For more information please call 800.638.8194 or visit www.touchstoneinvestments.com Specialties Touchstone Investments helps investors achieve their financial goals by providing access to a distinctive selection of institutional asset managers who are known and respected for proficiency in their specific area of expertise.
Touchstone Securities Inc. is a registered broker-dealer and member FINRA and SIPC Note: This account is not managed or monitored by Touchstone Investments, and any messages sent via Seeking Alpha will not receive a response. For inquiries or communication, please use Touchstone Investments's official channels.Quick InsightsWhat drove TEGAX's outperformance versus the Russell Midcap Growth Index?TEGAX's outperformance was led by overweight exposure to size, strong stock selection in Consumer Discretionary and Financials, and effective risk management through position adjustments.How is the fund positioning Industrials exposure amid sector volatility?The fund reduced Industrials exposure, focusing on high-quality compounders with pricing power and AI-driven growth, while trimming positions facing increased competition or cyclical headwinds.What are the forward growth drivers for top holdings like HOOD and AZO?Robinhood (HOOD) benefits from product innovation, S&P 500 inclusion, and expanding monetization; AutoZone (AZO) leverages unit growth, margin resilience, and aggressive capital returns.Recommended For You