Innealta Capital, a privately-held quantitative asset manager headquartered in Austin, Texas, has launched the Acclivity Small Cap Value Fund (AXVIX).
The fund’s objective is to seek long-term capital appreciation. It aims to deliver excess returns within the small capitalisation, value segment of the market by systematically exploiting academically proven and empirically tested equity premia while keeping broad diversification within and across industries.
The Portfolio Managers for the Acclivity Small Cap Value Fund are Sheridan Titman, PhD and Vito Sciaraffia, PhD. Dr Titman, former president of the American Finance Association (AFA), hails from the academic community and is revered as one of the pioneers of modern finance. Among his many contributions, his most notable is his insights about momentum in the cross-section of equity returns, which constitutes an important part of the toolkit that quantitative asset managers use worldwide. Dr Sciaraffia, former Senior Researcher on the Investment Strategy Research Team at Dimensional Fund Advisors (DFA), brings to the funds extensive experience developing factor-based strategies and managing quantitative investment solutions. The fund’s portfolio managers merge cutting-edge academic research with efficient empirical implementation of financial techniques.
AXVIX is the flagship strategy of Innealta’s factor-based investments franchise, Acclivity Investment Research (AIR). The firm possesses extensive capabilities in the design and implementation of quantitative strategies, which together with the investment team’s experience constructing factor-based portfolios, allows it to offer unique institutional-quality investment solutions previously not broadly available in the marketplace. The AIR strategies focus on delivering factor premium exposure in domestic small and mid-caps.
Dr Gonzalo Maturana (pictured), Innealta’s Director of Strategy, says: “The factor-based investment landscape consists of two distinct groups. Large asset managers who have the skill, but whose size may preclude them from effectively targeting certain factor premia and small asset managers, whose size would be an advantage, that tend to lack the experience or expertise to implement efficient factor-based portfolios properly. Acclivity fills this void in the market by providing investors with enhanced portfolios of a smaller size, run by experienced financial professionals that can provide deeper and purer exposure to those factors associated with higher expected returns over the long-term.”