North Square Select Small Cap Fund Achieves Five-Star Rating
The North Square Select Small Cap Fund Class I shares (ADVGX) recently garnered significant recognition by receiving its first Morningstar Overall Rating of five stars. This prestigious rating considers risk-adjusted performance and places the Fund among 591 Small Blend category funds. The accolades reflect the meticulous strategies employed by North Square Investments, the Fund's investment adviser.
Understanding the Six-Star Performance
In addition to the impressive overall rating, Class I shares received five stars specifically for the three-year period that concluded on January 31, 2025. This ranking distinguishes the Fund within its peer group, as it finished among the top 6% of funds in the Morningstar Small Blend category. The Select Small Cap Fund ranked 33rd among 591 funds based on Morningstar total return, marking a strong position in a competitive landscape.
The Fund's Investment Philosophy
North Square CEO and Co-Founder Mark Goodwin expressed his pride in the Select Small Cap Fund's five-star rating, attributing this achievement to the diligent efforts of the portfolio managers at Advisory Research. This newly coined Fund emphasizes a fundamental, research-intensive approach that often results in a portfolio filled with high-conviction small-cap stocks. Goodwin commented on the significance of this positive debut, noting the expertise and strategic methodologies that led to this success.
Commitment to Long-Term Capital Growth
The Select Small Cap Fund has set its sights on long-term capital appreciation. With a distinct approach that mimics private equity strategies within public markets, the Fund aims to manage downside risk effectively while identifying unique opportunities to unlock shareholder value. This philosophy drives the team's efforts to differentiate itself from typical small-cap equity managers.
Expertise of the Portfolio Managers
Advisory Research's Chairman Matt Swaim, a seasoned investment professional, serves as one of the three portfolio managers guiding the Select Small Cap Fund. Alongside his experienced colleagues, Christopher Harvey and Bruce Zessar, both CFA charterholders, Swaim brings an extensive 24 years of investment industry experience to the Fund. Their collective knowledge and insights contribute significantly to the Fund's strategic direction and performance.
Successful Navigation of Market Conditions
Swaim expressed his excitement concerning the Fund's rating, highlighting the unique opportunities available in today's market. He notes the disparity in the small-cap sector, often trading at a discount compared to broader indices. This market condition presents fertile ground for discovering undervalued businesses and embracing inefficiencies that can lead to substantial returns.
Navigating Investor Trends
Investors are increasingly leaning towards broad market ETFs for exposure, which sometimes leads to overlooked potential within individual small-cap companies. The Select Small Cap Fund aims to capitalize on these trends by investing in firms with strong competitive advantages, promising reinvestment opportunities, and management teams that align closely with long-term goals. Recognizing how aligned incentives can drive exceptional outcomes, the Fund's notable performance emphasizes this strategic alignment.
About North Square Investments
Founded in 2018, North Square Investments is an independent multi-boutique investment firm dedicated to providing distinctive active investment strategies. Headquartered in Chicago, Illinois, the firm employs experienced professionals within a robust senior management team, ensuring solid governance and oversight. As of January 31, 2025, North Square managed $2.12 billion in 12 mutual funds, a closed-end fund, and an ETF. Their comprehensive portfolio is enhanced by ownership interests in firms like CS McKee and Oak Ridge Investments, which collectively bring the total assets under management to $12.83 billion.
Core Investment Considerations
When considering an investment in the North Square Select Small Cap Fund, it is essential to recognize the inherent risks surrounding any investment. Principal risk factors may include equity risk, market risk, and small-cap company risk, among others. Thoroughly reviewing these factors is crucial for informed investing decisions.
Frequently Asked Questions
What is the North Square Select Small Cap Fund?
The North Square Select Small Cap Fund is a mutual fund that primarily invests in small-cap stocks, focusing on long-term capital appreciation.
What recent achievement did the Fund receive?
The Fund was recently awarded a five-star rating from Morningstar, recognizing its excellent risk-adjusted performance.
Who manages the Fund?
The Fund is managed by a team of experienced portfolio managers including Matt Swaim, Christopher Harvey, and Bruce Zessar, all of whom have substantial investment industry experience.
What distinguishes this Fund from others?
The Fund differentiates itself by employing a private equity approach to public markets, with an emphasis on downside risk management and finding undervalued businesses.
Where can I learn more about North Square Investments?
For more information about the firm, interested parties can visit the North Square Investments website to explore their offerings and strategies.
