Jeff Cardon
Wasatch Small Cap Growth Fund
Jeff Cardon isn't your typical growth investor. He's not chasing the latest hot stock. Yes, he buys companies with quick growth prospects -- those with earnings that he expects to double in five years -- but those earnings must be stable. His style has delivered outsize returns for Wasatch's Small Cap Growth Fund: 7% a year since 2000, vs. a negative return for its benchmark.
His choice: Ultimate Software Group, whose web-based systems handle payroll and human resources for businesses -- a $10 billion market that is growing. Ultimate is winning market share from rivals Paychex and ADP as companies look for lowercost HR products.
In the next five years, Cardon expects sales to grow 20% annually and profits to double. "This could be a 10- year growth story," he says.
--S.C.
NEXT: Checkpoint Systems
