Early in his career, he developed an aggressive style which utilized an unusually systematic method of identifying small, rapidly growing companies with the potential to beat quarterly earnings expectations, which would result in sharp upward movement of their stock price.
This style, sometimes referred to as "earnings momentum", is characterized by high volatility, with a tendency toward dramatic gains or losses.
PBH&G was initially dedicated entirely to managing money for institutional pension funds, and as a result was virtually unknown to the general public.
[1] This performance came to light in late 1993 when the fund went no-load and received a torrent of media attention, beginning with the August edition of Money magazine in which it was declared that "few people other than his clients recognize the name of today's hottest fund manager: Gary Pilgrim.
"[2] At a time when public awareness of mutual funds was rapidly increasing, Pilgrim quickly became one of the industry's most famous names.
At the end of June 1996, it was the #1 performer among all equity funds over the previous 10 years, according to Lipper Analytical Services.
During Pilgrim's peak popularity in 1996, Sheldon Jacobs, the editor in chief of the No-Load Fund Investor, stated, "I have never seen a group that has done so consistently well.
[6][better source needed] As the internet technology boom took off, however, PBHG Growth's performance skyrocketed, returning 93% in 1999.
[citation needed] Pilgrim appeared in the 1998 and 2004 editions of Jason Kelly's book The Neatest Little Guide to Stock Market Investing as a "master" investor whose strategy should be studied, though probably not strictly emulated, by individuals seeking success in stock market investing.
[citation needed] In fact, at the time charges were brought in 2003, PBA had already expelled all market timers from its funds and had allowed no such activity since December 2001.