In the normal course of events, we screen the fund universe (which includes active ETFs) for intriguing options which had debuted in the preceding three months. In general, that means reviewing “Funds in Registration” columns from the preceding quarter, as well as screening MFO Premium and Morningstar databases.
We arrived at this fund Continue reading →
On December 8, 2020, Virtus Investment Partners, in partnership with Kayne Anderson Rudnick (KAR) Investment Management, launched Virtus KAR Small-Mid Growth Fund. The fund applies Kayne Anderson’s firmwide discipline to small and mid-cap stocks. The hallmarks of that discipline are Continue reading →
On December 31, 2020, Oelschlager Investments launched the Towpath Technology Fund. The fund will be managed by Mark Oelschlager. The manager anticipates owning 25-40 tech stocks. The plan is to focus on firms with long-term, durable business advantages such as “barriers to entry, pricing power, network effects, limited competition, [or] lock-in effects.” His discipline is much more valuation-sensitive than tech managers generally pursue, and he focuses strongly on the durability of free cash flow metrics. This strategy is the same one the manager used at Continue reading →
On November 30, 2020, Wasatch Global Investors launched Wasatch Greater China Fund (WAGCX/WCCCX). The “Greater” part signals the inclusion of firms located in Hong Kong and Taiwan, as well as in the PRC proper. The fund will feature an all-cap portfolio of 35-50 names. This is Wasatch’s second country-specific fund, after the five-star Wasatch Emerging India Fund (WAINX), which launched Continue reading →
On October 26, 2020, Frank Capital Partners launched the West Hills Tactical Core Fund (LEBOX). The plan is to invest half or more of the portfolio directly, or through ETFs, in domestic large-cap stocks. The remainder will be placed in cash or options. The fund will be managed by Alan McClymonds. From 2011 to 2015 Mr. McClymonds was a consultant for Whitaker Securities in New York, NY. Whitaker’s “primary goal is to provide global liquidity in the fixed income markets,” which they do for 200 or so clients. From 2016 to present, Mr. McClymonds has been a private investor who was introduced to founder Brian Frank by a professional associate.
Three things to know Continue reading →
In our October issue, we shared a Launch Alert for ET Innovators. In late October we had the opportunity to speak with manager Tom Ricketts, and so share this expanded Alert.
On September 9, 2020, Evolutionary Tree Capital Management launched the Evolutionary Tree Innovators Fund (INVNX). The plan is to invest in 25-35 domestic growth-oriented companies that qualify as “leading innovative Continue reading →
On September 24, 2020, Vanguard launched Vanguard ESG U.S. Corporate Bond ETF (VCEB) which tracks the Bloomberg Barclays MSCI U.S. Corporate SRI Select Index. The expense ratio is 0.12%. The ETF does not advertise a target maturity, other than to say that the maturities on portfolio securities will be “more than one year.” It also excludes small (under $750 million) bond issues.
There are about a dozen ESG-screened, fixed-income ETFs already in operation from BlackRock, DWS, Inspire, Nuveen, and PIMCO. Between them, assets are low Continue reading →
On September 9, 2020, Evolutionary Tree Capital Management launched the Evolutionary Tree Innovators Fund (INVNX). The plan is to invest in 25-35 domestic growth-oriented companies that qualify as “leading innovative businesses” (hence the ticker symbol). The fund will be managed by Thomas M. Ricketts, formerly a senior portfolio manager on Sands Capital’s flagship Select Growth US Large-Cap Growth strategy, a $20+ billion Continue reading →
On August 5, 2020, T. Rowe Price launched ETF versions of four of its largest actively-managed domestic equity funds.
Those are:
T. Rowe Price Blue Chip Growth ETF (TCHP)
On December 31, 2019, Oelschlager Investments launched the Towpath Focus Fund (TOWFX). The fund invests in 25-40 domestic stocks regardless of market capitalization. The fund is managed by Mark Oelschlager.
In general, we intend Launch Alerts to occur within six weeks of a fund’s launch. We entirely goofed up the Launch Alert for Towpath because we were looking for it under its preliminary name, Oelschlager Equity. As a result, we entirely missed the launch and the fund’s first eight months of existence. Regrets for the slip!
What do they do?
Towpath is a concentrated, all-cap equity fund. The portfolio currently holds 38 securities. About 11% of the portfolio is invested in non-US stocks. Portfolio construction begins with macro-level Continue reading →
On July 21, 2020, Ziegler Capital Management launched the Ziegler Piermont Small Cap Value Fund (ZPSVX). The fund invests primarily in undervalued, domestic small-cap stocks. The fund is managed by the five-person Piermont Group, led by John Russon.
What do they do?
The fund is the newest manifestation of a Continue reading →
On May 1, 2020, Driehaus Capital Management launched Driehaus Small/Mid Cap Growth Fund (DSMDX).
The Fund is managed by Jeff James and Michael Buck, along with assistant portfolio manager Prakash Vijayan. The fund uses the same strategy used since 2012 for Driehaus Small/Mid Cap Growth separately managed account clients. Messrs. James, Buck, and Vijayan also Continue reading →
On May 27, 2020, ClearBridge Investments launched ClearBridge Focus Value ETF (CFCV), one of the first active, non-transparent ETFs launched under the so-called Precidian protocol.
Precidian Investments, like ClearBridge, is an affiliate of Legg Mason. Legg paid $25 million in January 2020 to acquire the majority ownership of Precidian. It had been a minority owner since 2016. Precidian received approval from the SEC for a process that allows fund managers to evade the traditional ETF rule requiring constant, real-time portfolio transparency. Precidian now licenses its “technologies” to other advisers, allowing them to offer active funds with limited portfolio visibility.
ClearBridge Investments, a 50-year-old firm, manages $120 billion in assets. It merged in 2013 with Legg Mason Capital Management. Each of Legg’s nine affiliates managers – including Royce and Brandywine – maintains its investment autonomy while Legg handles marketing and distribution.
Sometime in the third quarter of 2020, Franklin Resources will complete Continue reading →
On April 15, 2020, Jensen Investment Management launched the Jensen Global Quality Growth Fund (JGQSX). This new fund is a global version of Jensen Quality Growth: the same discipline, same managers. Jensen Quality Growth Fund (JENSX) is, at least from the perspective of those who look at long-term accomplishments, one of the best domestic large-cap core funds in existence.
What do they do? Continue reading →
On March 19, 2020, Grandeur Peak launched the U.S. Stalwarts (GUSYX) fund, the third of their “alumni funds.” U.S. Stalwarts will invest primarily in U.S. companies with market caps at the time of purchase of $1.5 billion or more. The fund’s first portfolio disclosure reflects those emphases: 84% US and 75% mid- to large-cap stocks.
Grandeur Peak, founded in 2011 by emigres from Wasatch Advisers which is located four miles down Continue reading →
On April 30, Matthews Asia launched its Emerging Markets Equity Fund. In parsing the name, please note that “Asia” modifies “Matthews,” rather than “Emerging Markets.” That is, this will be the first global equity fund in the Matthews lineup. While this is not the first time that Matthews has considered a fund with global reach (Mr. Matthews and Andrew Foster discussed it a decade ago), this is the first time that the Matthews strategy map encompasses the whole Continue reading →
One Rock Fund (ONERX) launched on March 6, 2020, the only public offering by – and only client of – Wrona Investment Management of Pinehurst, NC.
One Rock will invest in the stocks of corporations with “business momentum.” Here’s a description of the Continue reading →
In real estate, it’s all about location.
In investing, it’s all about timing.
On February 5, 2020, which the Dow at 28,807, Direxion launched the Direxion Flight to Safety Strategy ETF (FLYT). The passive fund tracks an index comprised of gold, large-cap utility stocks, and long-dated US Treasury bonds. It rebalances quarterly, with the least volatile component of Continue reading →
On February 28, 2020, Artisan Partners launched Artisan Select Equity Fund (ARTNX / APDNX / APHNX). The fund is managed by Artisan’s Global Value team.
The Global Value team managers are Daniel O’Keefe, Justin Bandy and Michael McKinnon. The senior member of the team is Mr. O’Keefe who joined Artisan from Harris Associates (advisers to the Oakmark funds) in May, 2002. Up until October 2018, Mr. O’Keefe was paired with David Samra on running the International Value and Global Value strategies. They, to put it gently, were awesome. Artisan notes that O’Keefe and Samra “were nominated six times (in 2008, consecutively from 2011-2014 and again in 2016) for Morningstar’s International-Stock Fund Manager of the Year award in the US. Mr. O’Keefe and Mr. Samra won the award for their joint management efforts in 2008 and in 2013 for the management of international-stock funds.” In October 2018, the team was split, with Mr. Samra maintaining custody of Artisan International Value (ARTKX) and Mr. O’Keefe overseeing Artisan Global Value. The funds have outperformed their peers by 4.7% and 4.3%, respectively, since launch. The translation, in both cases, is that the funds have very nearly doubled the returns of their peers over the long-term.
Artisan’s précis of the team’s approach:
The investment team seeks to Continue reading →
On December 2, 2009, Harbor Funds launched six new offerings, including four overtly “conservative equities” funds. Those funds are:
All four are being advised by a team from Continue reading →
