AXA IM launches EM small cap strategy
AXA Investment Managers (AXA IM) has announced the launch of its global emerging markets small cap strategy, aimed at providing investors access with a market capitalisation between $100m and $2.5bn.
According to the French asset manager, emerging market small cap equities are frequently mispriced and therefore a source of alpha potential for investors. AXA Rosenberg analyses nearly 200 financial statement items across a broad selection universe of GEM small cap companies comprising approximately 6,500 firms worldwide.
Kathleen Houssels, head of Research and Models for AXA Rosenberg, said: “We believe that small cap stocks in emerging markets can be a highly effective way to capture equity market up-side potential. Historically, these stocks have been less driven by global sector trends and more by specific market conditions, which has resulted in lower correlation with developed world equities. As small cap stocks continue to gain traction in the investment community, this strategy is a natural addition to AXA Rosenberg’s offering, which includes international and US small cap strategies.”