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Wanger GARP

An Overview of GARP Go-Getters, a Ralph Wanger strategy

Meaning:  GARP stands for Growth at a Reasonable Price, the Go-Getters portion was added by the creator of the mimic screen

Period of Reign: 1960-2000

Associated With:the Acorn Fund, run by Harris Associates.  Founder of Columbia Wanger Asset Management which manages $16 billion

Highlights: Returned 17.2% annual from 1970 to 1998 versus the S&P return of 14.4%.  In 1988, purchased shares of International Gaming Technology for $1/share and sold it in 1993 for $40/share

Ralph Wanger investing style summarized

Ralph Wanger Books

To be added.

Additional Ralph Wanger resources

Stock Screen Parameters to Mimic Ralph Wanger’s GARP Investment Style

The below bullet points attempt to recreate Ralph Wanger’s investment style using technical parameters that can automatically be screened.  These parameters are from an MSN interpretation, and were run using the MSN stock screener.  The text in italics explains how the parameter was defined in the screener.

1) Market Cap: Look for small cap companies

Parameter: Market Capitalization <= 1,000,000,000

2) Management: Wanger likes good management.  One indicator for this is high employee income compared to the industry

Parameter: Income Per Employee >= Industry Average Income Per Employee

3) Inventory: Look for companies that are selling quickly and not accumulating inventory

Parameter: Inventory Turnover >= Industry Average Inventory Turnover

4) Debt: Eliminate companies with too much debt

Parameter: Debt to Equity Ratio <= .5

5) Growth: Find companies with a strong record of revenue growth, and strong expected earnings growth

Parameter: 5-Year Revenue Growth >= 20
Parameter: EPS Growth Next 5 Years – High As Possible

6) Value: Find companies that are selling at a good value compared to their expected growth

Parameter: P/E Ratio: Current <= EPS Growth Next 5 Years