Boutique Capital Partners Ltd (BCP) today announces the signing of a strategic, U.K. distribution partnership with River Road Asset Management LLC.
Founded in 2005, River Road Asset Management (River Road) is a U.S., value-focused equity boutique, based in Louisville, Kentucky, with $10.1 billion in total assets.* River Road is an affiliate of Affiliated Managers Group (AMG).
River Road Large Cap Value Select (LCVS)
The partnership will initially focus on bringing to the U.K. market River Road’s Large Cap Value Select (LCVS) – a concentrated (20 to 30 stocks), highly active, U.S. equity strategy, benchmarked against the Russell 1000 Value Index. LCVS seeks high quality companies trading at attractive discounts. Since inception on 1 November 2014, the River Road LCVS strategy has delivered c.+300 basis points annualised outperformance, versus the benchmark.** The strategy, which is approaching its 10 year anniversary, currently has c.$1 billion in total assets.
In early 2025, U.K. investors will be able to access this alpha-generating, investment solution with the launch of a U.K. open-ended investment company (OEIC), subject to the necessary regulatory approvals.
LCVS seeks to provide investors with truly differentiated U.S. equity exposure. The strategy may be complementary to existing holdings in passively managed indices (e.g. S&P 500) and/or active growth investments. It can also be blended with more traditional, deep value allocations, potentially offering greater portfolio diversification.
Absolute Value®
River Road’s LCVS strategy is underpinned by Absolute Value®, a highly disciplined, proprietary investment approach developed by River Road. The firm believes it incorporates proven and enduring principles of value equity investing, with an avoidance of the pitfalls associated with the deep value and relative value investment styles. The objective of River Road’s Absolute Value® approach is to generate attractive, sustainable returns over the long term, with an emphasis on minimising downside portfolio risk.
Timing
The timing of this launch is very opportune, providing U.K. investors with a proven value-tilted approach, in U.S. equities, at a very competitive price point. Compared to the broader value peer group, LCVS has displayed a more favourable up/down capture versus the broader market (Source: eVestment, 30 June 2024) .***
Benefits of the partnership
The collaboration leverages the strengths of both firms, combining Boutique Capital Partners’ distribution expertise, with River Road’s proven investment skills and differentiated approach, which seeks to deliver superior value to investors.
For River Road Asset Management, the partnership provides a new distribution channel for the LCVS strategy, enabling the firm to expand its reach, and attract new investors in the U.K.
Securing such an exceptional boutique as its cornerstone fund partner, is evidence of BCP’s ability to attract best-in-class managers from across the globe.
Rodger Kennedy, Founder and Managing Partner, Boutique Capital Partners, commented: “Our partnership with River Road Asset Management aligns perfectly with our mission to provide high quality, differentiated investment opportunities to our fund buyers, at highly competitive prices. We believe this collaboration will create significant value for U.K. investors and contribute to the growth of the active asset management sector.
“Looking ahead, we expect allocation to active U.S. value equity funds to thrive as investors seek to diversify their U.S. equity exposure, given market concentration and the current tilt towards growth.”
R. Andrew Beck, CEO, River Road Asset Management, said: “We are very excited about the opportunities this partnership presents. Bringing together the complementary capabilities of Boutique Capital Partners and River Road continues to make our investment solutions more accessible to clients around the world, helping to meet the ongoing demand of U.K. investors.”
