US boutique launches US small cap equity fund in Europe
New York headquartered Fred Alger Management has launched a new Alger Sicav sub-fund focusing on US small cap equities, the Alger Small Cap Focus Fund, for European investors.
The strategy will be distributed throughout Europe by La Française partnering with Fred Alger Management.
Amy Zhang, senior vice president of Fred Alger Management manages the fund. She joined Alger in 2015 and also serves as portfolio manager of Alger’s Small Cap Focus and Small Cap Growth strategies for US based investors.
Zhang’s approach relies on pursuing exceptional small companies that have the potential to become exceptional large companies.
The fund is concentrated and includes fewer than 50 high-conviction stocks.
“We look to own fewer, higher-conviction names for a longer time period, which enables us to potentially drive superior investment returns with lower turnover for our clients,” said Zhang.
“In addition, we are benchmark agnostic, and we look to concentrate its holdings in high-growth sectors.”
Dan Chung, CEO and chief investment officer of Fred Alger Management, commented: “An important byproduct of focused portfolios is high active share, which we believe is appealing to investors.
“As we have learned firsthand through our Paris based partner, La Française, there is significant demand by non-US investors for these types of actively managed strategies, especially in the small cap space, and Alger helps fill that void with this fund.”
“We continue to diversify our product mix in order to meet non-US investor demand. In 2014, we launched two new sub-funds—Alger Emerging Markets Fund and Alger Dynamic Opportunities Fund (a long/short fund).
“This year, we launched euro-denominated share classes for investors in eurozone countries,” added Chung.