Boutique asset manager 361 Capital has launched the 361 US Small Cap Equity Fund, which is designed for investors who are looking for opportunities to boost their returns through small cap exposure.
Stemming from 30 years of research, the fund’s approach is based on a quantitative process that seeks to take advantage of earnings estimate revisions by investment analysts.
The strategy was launched nine years ago and was previously only available through institutional separate accounts.
The fund is managed by 361’s co-chief investment officer John Riddle (pictured) and managing director and portfolio manager Mark Jaeger.
“This is an exciting opportunity for us to offer another distinctive investment strategy that investors are actively seeking. 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,” says Tom Florence, president and CEO of 361 Capital. “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.”
The 361 US Small Cap Equity Fund seeks to achieve long-term capital appreciation that will exceed the Russell 2000 Index return over a three- to five-year time horizon. The fund will invest at least 80 per cent of the value of its net assets in common stocks of US small capitalisation issuers.
“As portfolio managers with a long and successful track record with institutional investors, we are excited to bring our unique view of how security analysts and investors make investment decisions to the mutual fund marketplace,” says Riddle. “Investors increasingly are looking for an edge and we believe our approach, which is grounded in the science of behavioural psychology, can provide a compelling source of alpha.”
In October, 361 Capital acquired BRC Investment Management. The transaction closed on 31 October 2016, with the firms combining under the 361 Capital name.
