T. Rowe Price, the US$1.4trn global asset manager, has strengthened its UK-domiciled OEIC suite with the addition of the US All-Cap Opportunities Equity Fund.
A pioneer of growth-style investing, T. Rowe Price has managed US equities since 1937 and is one of the largest active investors in US stocks globally – with $770bn of assets under management.
The T. Rowe Price US All-Cap Opportunities Equity OEIC vehicle is managed by Justin White and capitalises on the strong long-term track record of the group’s existing US All-Cap Opportunities strategy run for US-domiciled investors since 1985. White, who has spent his entire 13-year investment career at T. Rowe Price, has been managing the strategy since 2016.
In compiling the best ideas US All-Cap Opportunities Equity portfolio, which is benchmarked against the broad Russell 3000 Index, White seeks to identify compelling opportunities from across the market-cap spectrum. Over his six-year tenure as portfolio manager, White’s allocation to small and mid-caps has largely been within 20-35%. While the strategy typically maintains a tilt towards growth names, the manager also has the freedom to incorporate attractive value-style positions.
White’s stock selection process is based on four pillars – quality, expectations, better or worse, and valuation. The manager believes the framework provides a consistent and pragmatic approach to pursuing high-conviction ideas, as well as balances stock-specific and factor-level risks.
In populating the portfolio, White draws on the depth and breadth of T. Rowe Price’s extensive US equity research platform, which consists of 200 professionals from across the world. T. Rowe Price’s 18-strong dedicated ESG research team also provides additional support.
The new T. Rowe Price US All-Cap Opportunities Equity vehicle is a natural extension of T. Rowe Price’s OEIC range – which also includes US large-cap growth, US large-cap value, and US small and mid-cap equity strategies.
“As has been evident on multiple occasions in recent years, near-term enthusiasm, or despair, is often overemphasised by markets. Our actively managed approach seeks to capitalise on these overreactions, no matter where they are located within the US equity universe,” White explains.
“While 2022 has been characterised by increased fear and pessimism, we believe the US economy remains more resilient than many market participants currently perceive. Nevertheless, economic activity is going to slow as the Federal Reserve attempts to curb inflation, so it is more important than ever to have a disciplined process able to unearth idiosyncratic investment ideas.”
Nataline Terry, Head of Distribution, UK and Ireland, at T. Rowe Price, adds: “At T. Rowe Price, we are fortunate to have one of industry’s largest US equity research platforms, which provides Justin with invaluable insights as he assesses the opportunities and challenges for companies in this increasingly complex environment. We are extremely pleased to add the US All-Cap Opportunities Equity Fund to our growing OEIC range, which enables our clients to access the very best opportunities within this broad and dynamic market.”