alternative STRATEGIES

US All Cap

why invest in uS All cap
Offers investors attractive opportunities for capital appreciation and diversification within a less-widely-followed market segment. Seeks to capture the potential inefficiencies of less widely followed small-cap companies, successful small-cap graduates in mid-cap that continue to demonstrate dynamic growth prospects, and innovative large-cap industry leaders.
our edge

Why Nicholas US Equity Opportunities

Focus: specialize in dynamically growing small- and mid-cap companies
Insights: invest in both equities and convertibles for a holistic view of company
Discipline: combine breadth of quantitative tools with traditional fundamental equity and credit analysis
Alignment: constrain capacity to add value and invest alongside clients
Experience: principals have been managing portfolios for over 30 years
Catherine Nicholas
inception date
July 1, 2014
John Wylie
Separately managed account
our approach

Investment Philosophy

We believe that dynamic change often creates a disconnect between a company’s future earnings power and its stock’s valuation. Growth catalysts are often not fully understood and expectations tend to be adjusted upwards gradually. We seek to exploit this inefficiency by investing in dynamic companies exhibiting signals of change that will lead to an acceleration in revenue and/or earnings growth in which our research confirms the company’s growth is sustainable and its stock is a timely investment.

Portfolio Construction

Portfolios are actively managed to continually drive to the strongest investment ideas. Position sizes are based on the conviction in the investment thesis of each company relative to other portfolio holdings and risk exposures. Early warnings signs that suggest deterioration in company fundamentals or earnings strength lead to timely sell decisions.

Risk Management

Risk analysis is essential to minimize uncertainties and enhance potential long-term gains for client portfolios. To understand intended and unintended sources of risk, our investment team leverages quantitative tools with experience, judgment and deep knowledge of the holdings within a portfolio on a daily, weekly and monthly basis.

Typical Investment Policies

Number of Positions     40–60
Geography                       Publicly traded equity securities generally listed on US exchanges
Capitalization                  Greater than $100M
Security Max                   10%
Sector Max                      50%
Cash                                 Transactional, typically <5% (max 20%)

Driver of Expected Return

Bottom up, research-driven stock selection. Industry and sector weights and factor exposures are a residual of the stock-selection process.