Equity Funds

The Alquity VAM US Small Cap Growth Fund seeks long-term capital appreciation by investing in high-quality US small-cap growth companies generating earnings significantly in excess of consensus expectations at attractive valuations. The fund employs a disciplined, bottom-up investment approach grounded in the academically-proven Post-Earnings Announcement Drift (PEAD) phenomenon, where investors systematically underreact to positive earnings information. The strategy targets companies at inflection points of transformational change, where the market has yet to fully appreciate improving fundamentals and earnings power. Managed by Oberweis Asset Management, the fund’s disciplined focus on valuation and quality, combined with rigorous risk management protocols including MSCI Barra analytics and sophisticated monitoring processes, is designed to help manage downside risk during market stress periods.

Key Features

• Compelling Valuation Opportunity: Profitable small-cap companies represent one of the most attractively valued segments of the US equity market, offering significant potential for long-term capital appreciation
• Exploiting Market Inefficiency: Capitalises on persistent behavioural biases where analysts’ and investors’ slow reaction to fundamental change create mispriced opportunities in the small-cap universe
• 17-Step Fundamental Research Process: Employs rigorous proprietary research methodology to identify sustainable earnings surprises driven by new product cycles, management changes, regulatory tailwinds, or strategic acquisitions
• Disciplined Risk Management: Maintains a diversified portfolio of 60-120 conviction-weighted positions with robust monitoring processes, sector limits, and sophisticated risk analytics including MSCI Barra Portfolio Manager for downside protection

The Fund is managed by Oberweis Asset Management, a US-based investment boutique established in 1989 and headquartered in Chicago. Oberweis specialises in small- and micro-cap equities and is known for its disciplined, repeatable investment process grounded in fundamental research and behavioural finance, including the well-documented post-earnings announcement drift phenomenon. The firm is privately owned, with strong alignment between investment professionals and clients, and a long-standing, stable investment team.

The fund is managed by Kenneth S. Farsalas, CFA, Lead Portfolio Manager and Director of U.S. Equities, who brings 32 years of industry experience including 21 years with Oberweis, and David I. Covas, CFA, Portfolio Manager, who has 28 years of industry experience entirely with Oberweis Asset Management. Both portfolio managers are principals and owners of the firm, ensuring strong alignment of interests with investors.