A Growth-Stock Fund Warren Buffett Could Love

The rub on growth stock investing is that over the long term it always loses to a value style. Tell that to Dan Davidowitz and David Polen, co-managers of the Polen Growth Fund. The mutual fund, which opened in September 2010 and has a 1.25 percent expense ratio, is run in an identical style to Polen Capital Management’s privately managed accounts for high-net worth investors. Those accounts have delivered a 10.2 percent annualized return over the last 15 years, well ahead of the S&P 500’s 5.7 percent and the Russell 1000 Value’s 6.5 percent. An edited transcript of Lewis Braham's discussion of the fund’s strategy with Davidowitz follows.

Q: If you look at the historical stats, value investing has beaten growth. How do you explain your record?