EFG Asset Management has launched a US small caps fund that will invest in sectors set to benefit from regime change, including the shift to fiscal policy and deregulation.
The New Capital US Small Cap Growth fund will invest in 60 to 80 companies with a market cap typically below $5bn.
It is currently focussed on industrials, technology, financials and energy, and will seek to outperform the Russell 2000 Growth index.
It aims to invest in emerging companies with innovative products and services that can generate sustained double-digit earnings growth.
The fund will be sub-advised by three senior portfolio managers, Tim Butler, Mike Clulow and Joel Rubenstein, and supported by research analyst Chelsea Wiater. They are based in Portland, Oregon.
EFGAM chief investment officer Moz Afzal says: “As the US enters a new administration, with a focus on growing its domestic economy, this is a time to be exploiting the smaller cap end of the market and providing our clients much sought after growth opportunities.”
Tim Butler, senior portfolio manager, says: “Small caps tend to perform particularly well during economic recoveries, while growth stocks tend to do well in mid-cycle phases. By extension, small cap growth can perform well across a broad swath of the economic and market cycle.
“Even in slow-growth or recessionary environments, selected high-growth and share-taking small cap stocks can prove to be resilient.”