Threadneedle Investments has launched a US equities fund, which, according to its manager, is ‘all about pessimism’.
The Threadneedle US Contrarian Core Equities fund will invest in out of favour income and growth stocks.
Guy Pope, the manager, and his associate manager, Harvey Liu, will use the same approach as with the Columbia Management Contrarian Core fund.
They will use their proprietary screening method to find large cap US stocks, which are in the bottom third of their 52-week price range.
Seeking stocks they consider to be priced below the company’s value, they aim to build a portfolio with above average returns whilst balancing risk and rewards.
“We are looking for those companies that have fallen out of favour due to undue pessimism about their future,” Pope says.
“By taking a bottom-up approach to finding these stocks we can identify those unfavoured companies with the best upside potential in order to generate alpha for clients.”
The new fund will sit in Threadneedle’s Luxembourg Sicav range.
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