US-based River Road Asset Management is launching its US large cap value fund to UK investors for the first time through its collaboration with Boutique Capital Partners.
The CG River Road US Large Cap Value Select fund initially launched in the US on 1 November 2014, investing in a concentrated portfolio of 20-30 stocks in highly active, US equities. Managers Daniel Johnson and Matt Moran (pictured) have been running the fund since inception and seek to offer “truly differentiated US equity exposure”. The strategy currently has $950m in total asset run for US investors.
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Johnson said: “We build our portfolio stock by stock, searching less efficient parts of the US market to identify businesses with excellent company fundamentals at compelling valuations. Our investment philosophy seeks to minimise volatility and sits directly between deep value and relative value investing, while aiming to avoid the common pitfalls of each.”
The investment objective is to achieve capital appreciation of a five- to seven-year period, and the manager duo search for high quality companies trading at attractive discounts, while aiming to minimise volatility. It uses River Road’s proprietary investment approach Absolute Value, which includes principles of value equity investing, while avoiding the pitfalls of deep value and relative value investment styles.
The fund is being launched to UK investors in an open-ended investment company (OEIC), supported by Boutique Capital Partners, the outsourcing distribution firm set up by Rodger Kennedy. He said: “We identified something differentiated and unique when we first met the team at River Road. Their expertise and passion coupled with the exceptional long term track record of the Large Cap Value Select strategy, sparked immediate attraction for the UK market.
“Investors of US equities are seeking choice and diversification, due to the high concentration in markets and extended valuations, therefore the timing of this fund launch is extremely relevant and we are excited to partner with River Road to bring their fund to UK investors.”
Early bird investors can gain access to the fund with an ongoing charges fee (OCF) of 39 basis points.
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According to River Road figures, the strategy recently celebrated its 10th anniversary delivering 12.23% gross of fees (11.76% net of fees) composite returns versus the Russell 1000 Value index’s 8.62%, since inception. It has also outperformed the Russell 1000 Value Index in eight out of ten calendar years as of December 31, 2024.
The fund’s top 10 holdings include BJ’s Wholesale Club, CRH, Willis Tower Watson, Kroger and Fairfax Financial.
River Road is based in Louisville, Kentucky, and runs just over $10bn in assets under management and advice.