EFG Asset Management (EFGAM) has expanded its US equities range with the launch of a new small caps fund that will invest in 60-80 companies with a market cap of typically $5bn and below.
The New Capital US Small Cap Growth fund will mark the latest fund to be launched since EFGAM brought the management of its New Capital US Growth Fund in-house in February 2016.
EFGAM has launched the fund at a time when US policy is shifting towards deregulation and a focus on fiscal policy. The fund is currently focused on domestic companies particularly across industrials, technology, financials and energy.
Sub-advised by three senior portfolio managers, Tim Butler, Mike Clulow and Joel Rubenstein, the fund will seek to outperform the Russell 2000 Growth index over a full market cycle.
EFGAM chief investment officer Moz Afzal said: “We are very excited to launch the fund at this time. Tim, Mike and Joel have proven to be a formidable investment team and have many years’ experience running small cap portfolios over a number of cycles.
“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.”
Commenting on the launch, Butler said: “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. Our process across the EFGAM portfolios enables us to identify the companies that are well-managed and set to grow in today’s environment.”