Fiera Capital has announced that it is launching its Small-to-Mid Cap (SMID) Growth strategy to Asian investors.
The $6.1bn SMID Cap Growth strategy seeks to deliver capital appreciation, while also providing clients with stability during market downturns.
It typically holds 60 to 90 stocks and the team identifies companies that provide solutions to major technological, economic, demographic, regulatory and societal changes.
The managers balance growth and risk management by identifying a mixture of stable and emerging growth companies.
The strategy has returned 24.61% over 12 months and 15.25% over three years as of 31 March 2024, outperforming the Russell 2500 Growth index.
“The market tends to underestimate the longer-term opportunity posed by small to mid-size companies,” said lead portfolio manager, Sunil Reddy (pictured).
“US small and mid-caps represent an excellent opportunity for investors seeking exposure to dynamic US companies beyond the highly subscribed and analysed large cap market.”
He added: “Almost a third of the companies in the index don’t have any earnings so a passive approach just doesn’t work when it comes to the small and mid-cap market.”
“Our highly active approach is what allows us to identify and avoid these zombie companies and a lot of idiosyncratic risk unique to the smaller end of the market. More than 85% of our alpha comes from the team’s stock picking.”
Fiera Capital is an independent asset manager with $122.1bn in assets under management.
