Using data from FE Fundinfo, Portfolio Adviser shines a spotlight on the funds across different sectors that are smaller than £100m in size, but which have achieved top-quartile three-year total returns relative to their average peer. They also must have had the same fund manager at the helm over this time frame.
In the January issue of the magazine, Portfolio Adviser looks at IA North America, a tech-heavy sector that tends to shine when growth is in favour but struggles when value is the mode.
Artisan US Value Equity: Fund size: >£1m
While the average IA North America fund fought against a hostile economic environment and struggled to deliver a return above 32.3% over the past three years, the Artisan US Value Equity fund stormed 23.6 percentage points ahead, up 55.9%. The value approach adopted by managers Daniel Kane, Tom Reynolds and Craig Inman helped the fund outperform during a time when growth investors were going through the wringer.
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Their strategy targets companies that are “undervalued, in solid financial condition and have attractive business economics”, offering investors a different flavour to many of its growth-oriented peers. With assets under management (AUM) of just $800,000 (£634,144), Artisan US Value Equity is the smallest fund in its sector, yet it beat almost all its peers, the average size of which is £1.5bn.
Holdings in the fund are not available on most platforms, so investors wanting exposure to the tiny outperformer will need to apply directly through Artisan Partners.
Visit the January edition of Portfolio Adviser Magazine for a look at four other IA North America funds: FTF ClearBridge US Value, CT North American Equity, T Rowe Price Sicav US Select and Invesco S&P 500 QVM Ucits ETF Value Equity
