Investing

Top performing emerging managers through June 2023

Authors

Nasdaq for Asset Owners

Andres Ramos

Published

Jul 19, 2023 3:32PM EDT

Investing capital with the strongest managers is the goal of any asset owner. But in today’s challenging markets, allocators who seek to invest in managers with proven track records will find that access is constrained by excess demand and finite capacity.

One solution to this dilemma is for allocators to look beyond the well-worn path to the doors of established managers and explore the wealth of emerging managers in the public and private markets. Emerging managers offer differentiated thinking and unique investment strategies. While investing in these managers in not without its risks, the rewards for picking winners can be substantial.

Utilizing data from the Nasdaq eVestment platform, we’ve highlighted the top performing emerging US equity and hedge fund managers over the trailing three years.

For this analysis, emerging managers are defined as managers with between $50 million and $2.5 billion in firm AUM reported between 5/1/2022 and 6/30/2023. Performance data is through 6/30/2023 and requires a full 3-year return stream for inclusion.

US All Cap & Large Cap

Firm: Product	Strategy	AUM (millions)	3-YR Annualized Return (Gross of Fees)
Old West Investment Management: Old West All Cap Opportunity	US All Cap Core Equity	$319	33.2%
Black Cypress Capital Management: Black Cypress Equity	US Large Cap Value Equity	$209	32.7%
Cornerstone Investment Partners: Deep Value	US Large Cap Value Equity	$1,772	22.8%
SKBA Capital Management: Value Opportunity	US Large Cap Value Equity	$589	22.2%
Easterly Investment Partners: Snow Focused Value	US Large Cap Value Equity	$1,830	22.1%

US Small, SMID, & Mid Cap

Firm: Product	Strategy	AUM (Millions)	3-YR Annualized Return (Gross of Fees)
Tieton Capital Management: Small Cap Value	US Small Cap Value Equity	$159	31.5%
Private Capital Management: Private Capital Management Value Focus	US Small-Mid Cap Value Equity	$1,073	30.8%
Aegis Financial Corporation: Aegis Small Cap Value Composite	US Small Cap Value Equity	$372	30.2%
Penn Capital Management Company: Penn Capital Small to Micro Cap Equity	US Small Cap Value Equity	$1,394	30.1%
Quantico Asset Management of Wells Fargo Advisors: Mid Quant Composite	US Enhanced Mid Cap Equity	$724	29.9%

Hedge Funds & Alternatives

Firm: Product	Strategy	AUM (millions)	3-YR Annualized Return (Net of Fees)
Mulvaney Capital Management: Mulvaney Global Markets Fund	Managed Futures - Quantitative	$296	60.4%
VEC Investments: V.E.C Indian Special Situations Fund	Event Driven - Multi-Strategy	$56	54.2%
Connective Capital Management: Connective Capital EE - Enhanced Exposure	Fundamental - Long/Short Equity	$98	45.9%
Svelland Capital (UK): Svelland Global Trading Fund	Macro - Discretionary	$120	39.3%
Khrom Capital Management: Khrom Investments Fund	Fundamental - Long/Short Equity	$230	38.6%

Dive in deeper on the topic of emerging managers in the CIO Quarterly. The report is designed to highlight key insights on the topics that are top-of-mind for Chief Investment Officers at institutional investing organizations.

This edition of the quarterly focuses on how asset owners can find success investing with emerging managers via analysis on performance persistence for private markets emerging managers and commentary from an allocator CIO on allocating to emerging and diverse managers.

Read the report here.