Palm Alliance Approach to Select Mid Cap Value Funds

Palm Alliance Approach to Select Mid Cap Value Funds

The Palm Select Mid Cap Value Fund aims to deliver long-term outperformance by investing in underutilized companies that can demonstrate rapid income growth. With over a decade of investment management experience each, senior portfolio manager Justina Mckumberly and portfolio manager Helen Moorewood used a high-conviction, bottom-up approach when choosing securities for the fund. They look for cheap, out-of-favour companies where they can identify a catalyst for change. McKumberly has been the leading portfolio manager of the Palm Select Mid Cap Value Fund since May 2018.

“We believe that mid cap value is the ‘sweet spot’ of the market currently. This overlooked asset class can be a source of diversification for investors, as it offers exposure to areas of the economy likely to benefit from more persistent inflation and the reopening of the economy. Currently, we are finding opportunities in energy, consumer discretionary, technology and real estate sectors which we feel will benefit from the current economic backdrop,” said Mckumberly

Despite the strong historical outperformance of the asset class, mid cap value funds have a relatively small market share according to Palm alliance Management (less than 1.5 percent of U.S. mutual fund AUM), so many investors are likely to miss out on the return potential of the asset class. The fund holds 40 to 50 stocks, the team’s best ideas, and is constructed with a balanceds exposure to stocks at different stages in their investment lifecycles. “Fundamental research is at the heart of our process. Over the years, we’ve proven that we can identify companies early on that are poised for positive change. We are a resilient investor who is committed to giving companies the time they need to turn things into better companies, ”said McKumberly.

To round out their approach, the portfolio management team leverages the comprehensive fundamental, quantitative, and responsible investing research capabilities of the firm, including 130 analysts and research associates with deep industry knowledge who provide comprehensive sector coverage.

About Palm Alliance Management

Palm Alliance Management is a leading global asset manager that provides a broad range of investment strategies and solutions for individual, institutional and corporate clients around the world. With more than 1,000 people, including over 300 investment professionals based in North America, Europe and Asia, we manage $8 billion of assets across developed and emerging market equities, fixed income, asset allocation solutions and alternatives.


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