Some equity funds have seen double digit gains in just a week after Trump was declared the winner of the US election.
In the run-up to the election, many institutional investors opted to sit on the sidelines until the political uncertainty was over.
With that hurdle now cleared, investors are now positioning for a second Trump administration that is likely to implement tax cuts, deregulation and tariffs.
US stocks have since surged alongside the US dollar and Bitcoin, while US Treasury yields have risen, as markets embrace the so-called ‘Trump Trade’.
The S&P 500 index has gained 5% over the past week, breaching the 6000 level to new all-time highs, and small caps as measured by the Russell 2000 index are up almost double that amount.
Although US markets broadly have seen their best trading week of the year, some actively managed small-, mid- and large-cap funds have seen double digit gains in just a week of trading.
Below are five US equity funds available for distribution in Hong Kong or Singapore* that have surged above their peers since markets reacted to a Trump victory.
Heptagon Driehaus US Small Cap Equity
Most of the top performing US strategies had a small-cap focus. The Heptagon Driehaus US Small Cap Equity was one such fund, up 10.8% over the past week, according to data from FE fundinfo.
The $4.6bn strategy is managed by Jeff James, Michael Buck and Prakash Vijayan. It has a small-cap growth-tilt with 113 positions and a notable overweight to the consumer discretionary sector.
Its top three positions are in TransMedics Group, Crinetics Pharmaceuticals and Axon Enterprise. Over the past twelve months, the strategy is up 59.3%, relative to 48.7% from its benchmark the Russell 2000 Growth index.
Artemis Funds US Smaller Companies
This $1bn fund is up 10.6% over the past week, and also has a focus on small- and mid-cap companies, with a third invested in companies between $5bn and $10bn in size, and roughly half in stocks over $10bn.
It is managed by Cormac Weldon and Olivia Micklem, who employ a fairly concentrated approach of between 40 and 60 positions. Its top three holdings are in Jefferies Financial Group, Jones Lang and Vistra Energy.
Over the past twelve months, the strategy is up 55.2% compared with 44.8% from its benchmark the Russell 2000 index.
GS Goldman Sachs US Small Cap Core
This multi-factor fund is up 10.5% over the past week. It has a focus on small caps, benchmarked against the Russell 2000 index.
Run by a team from Goldman Sachs Asset Management, the strategy uses the firm’s ‘CORE’ strategy, its proprietary multi-factor model.
It aims to access US small caps with the same style, sector, risk and capitalisation characteristics of the benchmark, with added stock selection. It has 316 positions, where its top 10 account for roughly 7% of the portfolio.
Over the past twelve months, the strategy has returned 49.6% versus 44.8% from its benchmark.
Morgan Stanley US Insight
This all-cap strategy is up 10.4% over the past week. Led by Dennis Lynch of Morgan Stanley’s Counterpoint Global, it has a growth-focused investment approach.
Its overweight positions in stocks such as Tesla and MicroStrategy have been beneficial over the past few days given the 44% and 52% surge since Trump’s election win.
It has a concentrated approach, with just 35 positions in stocks ranging from mega cap to small cap. DoorDash, Tesla and Cloudflare make up its largest 3 holdings.
Over the past twelve months, the fund is up 65.9% compared to 38.8% from the Russell 3000 index.
Alger Mid Cap Focus
This mid-cap US equity strategy is up 10.1% over the past week. Managed by Amy Zhang, the strategy focuses on investing in mid-cap growth stocks.
Mid-cap stocks more broadly have rallied alongside small-caps since Trump’s election win, and this fund’s focus on mid-cap growth has buoyed its recent performance.
It also runs a concentrated approach, with 50 positions relative to 288 in the Russell Midcap growth index.
Over the past twelve months, the fund is up 43.8% compared with 45.5% from the Russell Midcap Growth index.
*The top-performing funds were measured in US dollar terms. The performance is based on data from FE fundinfo between 4/11/2024 and 11/11/2024.
