Brown Advisory unveils Small Cap Blend fund

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Investment manager Brown Advisory has announced the launch of its new US Small-Cap Blend fund.

The new strategy will combine the expertise behind Brown Advisory’s existing US small-cap growth and US small-cap value funds.

The US Small-Cap Blend fund forms part of the investment manager’s Dublin-domiciled Ucits range of funds.

It will be sub-advised by both management teams from the US small-cap growth and US small-cap value strategies.

The portfolio will be composed of around 100 US small cap stocks, employing a bottom-up and long-term investment process.

Brown Advisory head of international business Logie Fitzwilliams says the fund aims to give “broad US small-cap exposure” to investors.

This follows a series of soft closures in the US small-cap space while other funds have moved up the market spectrum, says Fitzwilliams, leaving UK investors with “limited options.”

He adds: “We believe the small-cap environment remains attractive given the relative stability of the US economy and the fact that small-cap companies generally have greater domestic revenues than their large-cap peers.

“In addition, corporate balance sheets are stocked with record amounts of cash so an acceleration in M&A is a possible catalyst for unlocking further potential upside in small caps.”

Brown Advisory Small-Cap Growth portfolio manager Chris Berrier says: “Through the combination of our two domestic small-cap strategies, we are able to continue to adhere to our firm’s philosophy while delivering a portfolio that is more diversified, style-agnostic and generally more reflective of the broader US small-cap landscape as represented by the Russell 2000 Index.”