New Capital
US Small Cap Growth Fund

»Tim Butler

Investing in Innovation

Investing in leaders and emerging leaders

We launched the New Capital US Small Cap Growth Fund in 2016, based on our view that US growth equities will be on an upward trend for years to come. The Fund is managed in the same style that this team utilized previously on Small Cap Growth, SMID Cap Growth and Mid Cap Growth portfolios over the last 13 years.

In short, the philosophy is to invest in leaders and emerging leaders by seeking: Quality, Growth, Scalability, and Timeliness.

The Fund is a long-only, small-cap US equity fund, with a high conviction approach; typically holding between 60-80 stocks.

To pare down the universe to best ideas, the team uses a detailed bottom-up process, driven by in-depth industry analysis and proprietary financial modelling.

Each stock in the universe goes through our proprietary investment framework, grading every one based on four categories to produce an overall score.

The first two factors are qualitative, looking at a company’s quality and timeliness – while the managers want to hold the best stocks, they also want to own them at the right point.

This is typically before a positive earnings surprise and over the years, around 75% of holdings in the portfolios every year have met this criterion.

While the first two metrics are subjective and tend not to vary too far, the other two are quantitative and linked to real-time stock prices. One is called the growth grade and the other the market’s growth grade: this focuses on our valuations but tempers them with consensus to ensure funds do not own companies too early.

We tend to be long-term holders of stocks. That said, the team are far more active traders than many peers, looking to benefit from ongoing volatility in stock prices.

On the case for a US growth focus today, our analysis highlights an improving macro backdrop in the country, with interest rates, inflation and energy prices all co-operating with increasingly confident consumers.

A rising interest rate environment is traditionally one in which growth equities outperform value and valuations are also positive at present, at a discount to the long-run average with solid earnings expectations and many businesses sitting on cash balances.

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12.31%

Cumulative performance
USD Inst Acc share class Since inception (09 Dec 2016)
 
  1 Year YTD
Fund
Benchmark

PRICES AND LITERATURE

Class ISIN Price Currency Price Date Factsheet Datasheet KIID
USD Inst Acc IE00BYX8VM74 119.60 USD 10/16/2017
USD Ord Acc IE00BYX8VL67 116.51 USD 10/16/2017 -
GBP Inst Acc (unhedged) IE00BYX8VY96 105.01 GBP 10/16/2017 -

DOWNLOAD FUND DOCUMENTS FOR DUE DILIGENCE

Reports & Accounts
Annual Report-ENG
Semi-Annual Report-ENG
Prospectus
Full Prospectus-ENG
How to Invest
Application Form
Shareholder Notice
Shareholder Notice-ENG
HMRC Year End Reporting
HMRC Reporting-ENG
Registration Matrix
Registration Matrix-ENG
Dealing Calendar
Dealing Calendar-ENG
Memorandum and Articles of Association
Memorandum and Articles of Association-ENG

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