Northern Lights Capital Group and WHV Investment Management have invested in EAM Investors, a California-based manager which focuses on small and micro-cap equities.
Northern Lights and WHV will be teaming up with EAM to grow its international business, consisting of international small cap, emerging markets small cap, and international micro cap equity strategies.
EAM currently manages USD987 million and was founded in 2007 by Travis Prentice, Montie Weisenberger and Josh Moss, who all have managed small and micro-cap portfolios for institutional clients for over 12 years.
“We’re excited to partner with the team at EAM, and believe they bring a distinctive perspective to international small cap and emerging markets small-cap equities,” says Paul Greenwood, managing director at Northern Lights. “They have a strong, investment-centric culture and are dedicated to their investment process, something we look for in every Northern Lights partnership.
“We look for innovative products with time-tested methodologies and established track records to maximise the value of applying our distribution horsepower,” says WHV CEO Andrew Turner. “EAM exhibits those qualities and has a highly differentiated and sustainable philosophy and process in a space where high alpha is achievable.”
“The partnership with Northern Lights and WHV brings considerable resources and an extensive, experienced team to our efforts,” says Prentice, who is also chief investment officer of EAM. "In addition, our firms share the same vision of what it takes to be successful in the investment management business."
EAM’s investment process seeks to capitalise on positive fundamental change by taking advantage of investor biases and market inefficiencies. Through its objective and disciplined investment process, the team looks for opportunities where other investors may be slow to react to a company’s improving financial outlook.
“Our investment process was built specifically to capture alpha in inefficient markets where there are a large number of possible investments, high cross-sectional volatility, and sparse analyst coverage,” says Moss, who is also portfolio manager at EAM. “Through our experience, we believe our approach has the right blend of objectivity and focused research to exploit the entire opportunity set present in emerging and developed international equity markets.”
EAM creates diversified portfolios built within a bottom-up, risk-aware framework that is unconstrained to specific benchmark sectors or country weights. EAM will be offering international small cap, emerging markets small cap, and international micro cap equity strategies.
