Goldman Sachs Asset Management has launched the US Smaller Cap Equity Portfolio which seeks to provide investors access to undervalued US smaller cap companies.
The group said it aims to capture the strong compounding growth potential of the smaller cap companies that could emerge into tomorrow’s large cap leaders.
The long-only portfolio of high conviction US smaller cap stocks will be managed by GSAM’s US Small Cap team.
“US smaller caps offer a fertile ground for active management in a relatively under-researched universe,” said Sally Pope Davis, one of three co-lead portfolio managers for the US Small Cap Team, alongside Rob Crystal and Sean Butkus.
The portfolio provides exposure to the strong growth environment in the US, given that smaller companies tend to source the vast majority of revenues domestically, the group said.
“We believe the more domestically-focused smaller cap universe is particularly well-placed to benefit from the current market environment,” said Nick Phillips, Head of GSAM’s International Retail Client Business.
The portfolio is a new sub-fund of the Ucits-qualifying Luxembourg-domiciled Goldman Sachs Funds Sicav. The portfolio is offered to both institutional and retail clients and is registered for sale across a range of European countries.