Blum also owns Linkedin ( LNKD), the online professional network. He says that advertising revenue will grow rapidly as more corporate recruiters use the network.

John Hancock portfolio manager George Fraise says he only wants companies that can grow rapidly because they serve expanding markets. But it is not enough for a company to be fast-growing. The business must also have a high return on capital with a strong balance sheet and little need for outside borrowing. "We are looking for companies with a rare combination of high quality and strong growth," he says. "Without high quality, you run the risk of losing capital. Without growth, you can't get the compounding that you need for strong returns."

Most often John Hancock's strategy has worked. During the past five years, the fund has returned 8.0% annually, outdoing 93% of peers.

A holding is Monsanto ( MON), the big producer of seeds and herbicides. The business is enjoying strong demand from farmers around the globe who are struggling to increase crop yields. Fraise says that Monsanto will continue thriving as it brings out new lines of genetically modified seeds.

Another holding is Ecolab ( ECL), a global leader in cleaning and sanitation products for hotels, restaurants and industrial facilities. "Customers go to Ecolab because it has the scale to offer standardized solutions around the world," Fraise says.

William Blair portfolio manager David Fording prefers buying growth stocks that sell at discounted prices. Such stocks can produce huge returns as their earnings climb and the P/E multiples expand. But these days bargain-priced shares are becoming rare. So Fording mostly tries to find stocks that can outdo the markets by delivering strong growth -- and not necessarily achieving multiple expansion.

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