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Artemis US Smaller Companies Class I - Accumulation (GBP)

Sell:354.57p Buy:354.57p Change: 2.77p (0.79%)
Prices as at 9 April 2021
Sell:354.57p
Buy:354.57p
Change: 2.77p (0.79%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 9 April 2021
Sell:354.57p
Buy:354.57p
Change: 2.77p (0.79%)
Prices as at 9 April 2021
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund is on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. However, this is not a recommendation to buy.

We think this is a great way to invest in smaller companies with high growth potential in the US, one of the world's most innovative markets. The fund aims to deliver long-term growth by investing in smaller companies based in the US. Smaller businesses are often among the most innovative and offer lots of growth potential, but they're higher risk than their larger counterparts.

Cormac Weldon has almost 20 years' experience of investing in the US and has the support of a strong team of analysts. Weldon and his team use a clear, disciplined investment approach, which has served the fund well since its launch. We think the fund could be a good addition to a portfolio with little invested in the US, or could work well alongside other US funds focused on larger companies.

Our view on the sector

UK investors need little introduction to America. It's the world's biggest stock market and is home to world-leading companies in almost every industry there is, from media and film, through to manufacturing and transportation. We think most diversified portfolios should have some exposure to the US market. But it's one of the most heavily researched in the world so share prices of well-known companies can react quickly to new information. We think this can make it more difficult for fund managers to find opportunities missed by others and to consistently perform better than the broader market over the long term. Many funds investing in the US aim to grow the value of your original investment, rather than pay a high level of income. Some focus on the largest companies in the market. Others look for opportunities amongst small and medium-sized companies, which may offer greater growth potential, but are higher risk.

Performance Analysis

Since joining Artemis to launch the fund in October 2014, Weldon has delivered attractive returns for investors. Our analysis suggests Weldon's stock picking has added value for the fund, particularly in the consumer discretionary sector. Please remember past performance isn't a guide to the future.

Investment Philosophy

Cormac Weldon believes stock market prices don't always reflect the true worth of companies, especially smaller ones. That gives him the opportunity to find businesses that've been underestimated or overlooked by other investors but he thinks have great potential. Smaller businesses are often among the most innovative and offer lots of growth potential, but they're higher risk than their larger counterparts.

Process and Portfolio Construction

Weldon looks to invest in companies that he thinks have a 2:1 ratio of upside potential versus downside risk from the current market price. He does this by identifying what really drives the company. His team then spend time modelling what could happen to their profitability and growth over time, as they are likely to have the greatest impact on its valuation in the future. He then builds the portfolio with these ratios in mind, with the companies where upside potential significantly outweighs the downside risk likely to justify larger position sizes in the fund.

Regularly meeting company management is important to Weldon and his team. They think this is one of the best ways to deepen their understanding of the business model and assess the quality of the management team.

Weldon also considers how the US economy is performing to identify sectors that are benefiting from trends, as well as the areas that are finding things tough. This can help him decide how much to invest in a sector, although he won't invest beyond 10% more or 10% less than its weight in the Russell 2000 index. Single investments are also limited so their weight in the portfolio doesn't differ too much from their weight in the benchmark. In practice though the fund and the benchmark will look different as the fund only invests in 40-60 companies out of the thousands that make up the index. Weldon believes the sector and stock level limits provide him ample freedom to reflect his convictions whilst also ensuring a good balance of investments. Holding a smaller number of investments can increase risk, as each has a larger impact on performance.

question mark Manager Track Record Based on HL Quantitative Research

This information is currently unavailable.

Fund Track Record

09/04/16 to 09/04/17 09/04/17 to 09/04/18 09/04/18 to 09/04/19 09/04/19 to 09/04/20 09/04/20 to 09/04/21
Annual return 38.04% 4.95% 23.68% -8.06% 69.18%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Fund Management Group Comment

Artemis was formed in 1997 and offers a range of funds invested in the UK, Europe and around the world. The Artemis philosophy is that a fund's primary aim is to beat the market and generally the fund managers are free to pursue their best ideas in order to achieve this.

Artemis is home to some of the market's leading fund managers who are required to invest their own money into their funds, and therefore success for them is success for their investors. We feel this is a great incentive for them to continue striving for good performance.

Information about the fund

Fund manager biography

manager photo
Manager Name: Cormac Weldon
Manager start date: 27 October 2014
Manager located in: London

Cormac is head of the US team and has managed Artemis' US Equity, US Select and US Smaller Companies (Oeic and Sicav) funds since launch. He studied accounting and finance at Dublin City University, graduating in 1987 and joining KPMG. After moving to Provident Mutual where he was a US equity analyst, Cormac spent two years as a fund manager for the British Gas Pension Fund. He joined Threadneedle in 1997, later becoming head of the North America team and the lead manager of three of its US funds. He moved to Artemis in 2014.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account