Heptagon Fund’s Yacktman US Equity graded gold by S&P Capital IQ Fund Research
Heptagon Fund’s Yacktman US Equity Fund – a Ucits product based on a US mutual fund – has been awarded a Gold fund grading by S&P Capital IQ Fund Research.
The fund is domiciled in Ireland and maintained and promoted by Heptagon Capital, a London-based, independent investment firm with just over USUSD7.2bn in assets under management. The firm invests in a range of long-only equity and debt funds, hedge funds, real estate funds and private equity vehicles.
Within the S&P Capital IQ US mainstream equities peer group of over 700 funds, the product is one of only 27 out of 55 graded funds to achieve a Gold grading.
From its launch in December 2010 to the end of May 2013, this fund has produced a top-quartile cumulative ranking in its S&P Capital IQ peer group, returning 34.2 per cent versus the peer fund median of 27.6 per cent, and has attracted significant inflows. The high cash position has helped during the various market reversals.
Yacktman Asset Management, the sub-adviser on this fund, is an investment boutique based in Austin, Texas, from where it manages over USD23bn in focused, value-oriented equity portfolios. The three senior members of its investment team – Donald Yacktman, Stephen Yacktman and Jason Subotky – have worked together since 2001.
The fund is managed in Yacktman's characteristic house style that aims to buy high-quality companies on low valuations for above-average medium – to long-term capital appreciation. The three key criteria are a good business, a low purchase price and a shareholder-friendly management. The approach is bottom-up, value-oriented and almost benchmark-agnostic.
Emphasis is placed on forward rates of return which, when coupled with the team's conviction in a company's management and risk profile, will determine the position size in the portfolio irrespective of their index weight.
Peter Fuller, fund analyst at S&P Capital IQ Fund Research, says: “Our confidence in the firm is further enhanced by the performance of the US mutual fund – The Yacktman Fund – on which this Ucits product is based. The US mutual fund has outperformed its S&P 500 benchmark in eight of the last 13 years and cumulatively over three, five and 10 years to date.
“This strong track record from a highly stable team with a consistent, disciplined investment approach comfortably supports the fund achieving an S&P Capital IQ Gold grading.”
Warwick Ryan, UK director at Heptagon Capital, says: “We are very pleased that our Yacktman US Equity Fund has succeeded in getting a gold Grading from S&P Capital IQ Fund Research. Although Yacktman have won numerous awards for the outstanding and consistent investment results of their US Mutual Fund over the last decade, it is still very encouraging that this UCITS fund vehicle, which mimics that same strategy, is recognised as following in such illustrious footsteps, despite launching only in late 2010.”