MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Friday, October 7, 2022 A $785MM-AUM Firm Uncorks a Third Fund The team at a five-year-old, Midwestern shop with a $785-million-AUM (as of yesterday) pair of ETFs has finished brewing their third fund.
DSMC is a series of ETF Series Solutions, with Distillate as investment advisor and Vident Investment Advisory, LLC as subadvisor. (VIA also subadvises Distillate's first two ETFs.) The new fund's PM team includes: Beidler, Distillate co-founder Matthew Swanson, and VIA portfolio managers Austin Wen and Rafael Zayas. The idea behind DSMC is to invest about 150 small and mid-cap stocks using a systematic approach that takes into account current and future fee cash flow, quality, and valuations. The fund is Distillate's first actively managed one. Cole describes small and mid-cap equity investing as "ripe with opportunity." "To this point, small- and mid-cap offerings have not taken a discerning eye to this universe of stocks, ignoring the significant dispersion to be found across valuations, high levels of leverage on the books of many names, and the fact that almost 20% of companies making up the largest small-cap index are not expected to generate positive free cash flow in the next 12 months," Cole states. "Across market caps and exposures, we believe in selectivity and this category in particular requires a systematic methodology when looking at the true fundamental value factors and risks of each stock." "Value isn't dead," Beidler states. "It's just not being measured properly." Printed from: MFWire.com/story.asp?s=64976 Copyright 2022, InvestmentWires, Inc. All Rights Reserved |
