AXA IM Launches Small-Cap Quant Fund

Jun 29 2015 | 12:38pm ET

AXA Investment Managers has launched its global emerging markets (GEM) small cap strategy, which aims to provide institutional investors with access to the alpha potential offered by emerging market companies with market capitalisations between $100 million and $2.5 billion.

In a market segment known for wide mispricings, AXA Rosenberg analyses nearly 200 financial statement items across a broad selection universe of GEM small cap companies comprising approximately 6,500 firms worldwide. 

The team's proprietary bottom-up stock selection approach aims to capture alpha ideas while taking informed liquidity risk and minimising transaction costs. 

As the majority of companies in the GEM small cap universe have limited to no analyst coverage, AXA Rosenberg seeks to leverage its unique perspectives on fair value and earnings forecasts to identify investment opportunities across a uniform set of valuations.

"We believe that small cap stocks in emerging markets can be a highly effective way to capture equity market up-side potential," said Kathleen Houssels, Head of Research and Models for AXA Rosenberg. "Historically, these stocks have been less driven by global sector trends and more by specific market conditions, which has resulted in lower correlation with developed world equities. As small cap stocks continue to gain traction in the investment community, this strategy is a natural addition to AXA Rosenberg's offering, which includes international and US small cap strategies."

AXA Rosenberg has 30 years of experience in managing small cap strategies across a variety of market conditions. The GEM small cap strategy leverages AXA Rosenberg's breadth of experience and track record managing both small cap and emerging market strategies launched in 1987 and 2006, respectively.


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