Fremont Investment Advisors has launched the Fremont New Era Growth Fund, a no-load fund that seeks long-term capital appreciation by investing in a concentrated group of large-cap US companies.
The Fremont New Era Growth Fund focuses its investments on high quality, growth companies that have potential to outperform broad market indices over full market cycles. Larger capitalization equities tend to offer greater liquidity than small capitalization stocks and are generally more established companies with seasoned management and better operations and earning visibility. Larger capitalization companies also have greater analyst followings and are more widely and thoroughly researched. As a result of all these factors, the companies tend to have lower stock price volatility than smaller capitalization equities.
Fund management uses a quantitative investment strategy to identify companies with stable earnings growth, above market return on equity and attractive relative valuation. Companies meeting management’s quantitative criteria are further analyzed for the characteristics of high quality companies, including superior management, products, distribution, access to markets and business plan implementation. Of the final candidates, twenty to thirty of the most attractive companies are chosen for the portfolio based on sector and economic considerations. Fund management uses portfolio concentration as a tool to differentiate the portfolio from market indices.