Granahan Investment Management launches Granahan US SMID Select Fund
Small cap equity specialist, Granahan Investment Management (GIM), has launched the Granahan US SMID Select Fund on the Granahan Funds plc platform. A seed client has invested nearly USD100-million.
The SMID Select strategy is a high conviction portfolio of stocks that represent a compelling combination of companies with exceptional long-term growth opportunities and those undergoing material fundamental business improvement leading to accelerated growth.
David Rose, CFA, is the portfolio manager for the fund, and Senior Investment Officer and Managing Director at GIM. Rose has over 20 years industry experience, including as a portfolio manager for several highly ranked small- and mid-cap equity funds. Prior to joining GIM, he worked with American Century, Fidelity/Pyramis and Furey Research Partners. David offers a proven investment process and results that have earned recognition in the mutual fund and institutional investment communities.
Granahan CEO, Jane White, says: “All of us at Granahan are pleased to be able to offer our SMID Select strategy in a UCITS format, as the Fund now allows our non-US clients access to a diversified portfolio of innovative companies and opportunistic investments in the US smaller cap market.”
Rose adds: “As PM for the strategy and Fund, I’m fortunate to be able to leverage the research and expertise of our team of small cap specialists, and our proven process, to build a high conviction portfolio that is diversified across sectors and LifeCycles. I look forward to working with clients across Europe and other geographies as they seek investments in US small and mid-cap equities.”
The Granahan US SMID Select Fund is benchmarked against the Russell 2500 Growth and the average weighted market cap currently sits around USD5 billion. Rose builds the 50-name portfolio from the bottom-up, resulting in a high active share.
The Fund will be marketed in the United Kingdom, Ireland, Switzerland, Belgium, the Channel Islands, the Nordics and Netherlands by London-based third party marketer Daymer Bay Capital. GIM provides support for other geographies.
Charlie Baillie, Co-Founder of Daymer Bay Capital, says: “At Daymer Bay Capital we look to represent ‘hidden gem’, elite, specialist managers and Granahan is just that. The launch of the Granahan US SMID Select UCITS Fund means that we can now offer investors Granahan quality in Microcap, Small Cap and SMID formats. We are so pleased to be able to bring another Granahan Fund to European investors.”
Charlie adds, “We are greatly looking forward to working with David Rose. He is a talented investor, backed by a team of small cap specialists. In addition to classic ‘Core Growth’ stories, David seeks alpha in opportunistic ‘Special Situations’ and innovative ‘Pioneer’ companies as well. As such, David’s strategy has historically invested in somewhat more varied companies and sectors than a classic growth manager.”
Granahan Investment Management is a small cap equity boutique with USD2.2 billion in assets under management. The company, founded in 1985, is 100%-owned by its active employees, aligning the interests of the GIM team with those of our clients.