Skandia Investment Group (Sig) has replaced Epoch Investment Partners with Lapides Asset Management. The US-based boutique has been appointed to run a £45m (€50m) US mid-cap value mandate as part of Sig’s flagship Skandia Global Dynamic Equity Fund.
Francois Zagame, portfolio manager of the Skandia Global Dynamic Equity Fund, said: “The decision to remove Epoch in favour of Lapides was based on Epoch being a large cap specialist whereas Lapides are a mid cap value specialist and I believe there are significant opportunities within the mid cap space which Lapides are perfectly poised to take advantage of.”
Lapides Asset Management is a boutique firm focused solely on US mid- and small-cap equities. It aims to identify companies with sustainable competitive advantages and invest when the share price falls below the long-term fair value. The firm utilises an active idea generation approach, followed by very thorough fundamental research with a strong focus on ensuring that the company’s long-term business model is sustainable and that the reasons for the share price drop are not a long-term risk.
According to Sig’s research, Lapides’ style and specialism in mid-cap value gives them opportunities to exploit the great alpha potential within the class.
Zagame said: “Their [Steve Wilson and Glenn Sussman of Lapides] extremely thorough research process is a real asset which involves gaining an in-depth understanding of the companies they research and it is not unusual for them to monitor companies for years before the opportunity to invest arises. This meticulous research process coupled with a focused and contrarian approach enables them to exploit the significant alpha potential in the US mid-cap value space and therefore potentially deliver strong returns for investors.”
©2011 funds europe
