American asset manager 361 Capital has unveiled a new small cap equity fund that aims to help investors improve their returns through small cap exposure.
The new vehicle, known as the 361 US Small Cap Equity Fund, will incorporate quantitative approach that looks to capitalise on earnings estimate revisions by investment analysts.
The fund will invest at least 80% of the value of its net assets in common stocks of US small capitalization issuers.
It will be managed by 361 Capital co-CIO John Riddle and managing director and portfolio manager Mark Jaeger.
“Investors increasingly are looking for an edge and we believe our approach, which is grounded in the science of behavioral psychology, can provide a compelling source of alpha,” Riddle stated.
361 Capital president and CEO Tom Florence said: “Clearly there is a shortage of quality small cap mutual funds still open in the marketplace today and we are pleased to be able to fill that void.
“John Riddle and Mark Jaeger have expertly managed this strategy for nearly nine years at BRC Investment Management, and investors have benefitted from their steady navigation of the small cap landscape.”