AllianceBernstein is launching a US value fund, saying it will bring the firm’s successful US large cap value strategy to European investors for the first time.
The fund, managed by Cem Inal, chief investment officer and portfolio manager, aims to capitalise on undervalued large-cap companies in the US market.
The AB US value portfolio mirrors the approach of AB’s US large cap value strategy, which has a track record dating back to 1973. Previously available to US investors through the AB Value Fund, the strategy now extends its reach to the European and wider Emea markets.
The portfolio, which has $229.6 million in assets under management, is domiciled in Luxembourg and registered across multiple European countries, including the UK, Germany, France, and Italy.
Cem Inal, who leads the investment team, emphasised the fund’s focus on identifying high-quality large-cap companies with strong fundamentals. “We have been running the US Value Strategy successfully for over 50 years and we’re delighted that it will now be accessible to the European market. The current value opportunity is substantial in the US, with many successful and growing companies being valued at large discounts to their intrinsic cash flows,” Inal said.
The portfolio’s investment strategy relies on both fundamental and quantitative research to pinpoint companies that are not only undervalued but also have compelling investment catalysts at the company or industry level. The bottom-up approach focuses on researchable and idiosyncratic opportunities, aiming to build a portfolio of 45 to 65 holdings that are often misunderstood by the broader market.
Honor Solomon, CEO of Emea and head of Emea retail at the firm, said the fund launch “fills a gap” in the firm’s US equity offering for the European market.
“We have already had significant interest from our clients for this product, and we’re looking forward to bringing it out to our wider clients so they can also access this long-established strategy,” Solomon said.
