T. Rowe Price is launching a US All-Cap Opportunities Equity Fund for its UK-domiciled OEIC range, mirroring a $7.6 billion strategy it already runs for US investors.
The fund will be managed by Justin White who already manages the firm’s existing US All-Cap Opportunities strategy, which was launched in 1985 for US-domiciled investors.
According to Morningstar data, the original fund has produced trailing returns of 12.35% over the past 15 years while the Morningstar Large Mid Cap index returned 10.46% over the same period.
Having managed the portfolio for six years, White has predominantly allocated small and mid-caps within 20-30% with the stock selection focusing on four primary pillars.
This includes quality, expectations, better or worse, and valuation with White stating the framework provides a consistent and pragmatic approach to pursuing high-conviction ideas, as well as balancing stock-specific and factor-level risks.
Discussing the new Fund, White explained: “As has been evident on multiple occasions in recent years, near-term enthusiasm, or despair, is often over-emphasised by markets.
“Our actively managed approach seeks to capitalise on these overreactions, no matter where they are located within the US equity universe.”
White can also allocate to value-style stocks with the new strategy.
He added: “While 2022 has been characterised by increased fear and pessimism, we believe the US economy remains more resilient than many market participants currently perceive.
“Nevertheless, economic activity is going to slow as the Federal Reserve attempts to curb inflation, so it is more important than ever to have a disciplined process able to unearth idiosyncratic investment ideas.”
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