U.S. Small-Cap High Alpha

Through a combination of concentrated long positions and select short positions*, this long-biased U.S. small-cap strategy seeks to provide an attractive risk/return profile to investors looking for an enhanced allocation to an alpha-rich universe of high-quality companies.

Philosophy

The team believes that fundamentals matter over a market cycle and that small-cap companies with durable, niche business models and discounted valuations can leverage the market’s potential upward trajectory over the long term. In combination with long positions in this alpha-rich universe, short exposure to select companies with structural challenges can provide an additional potential source of alpha.

Managed by

Bill J. Talbot, CFA

Senior Portfolio Manager, Head of U.S. Small-Cap Equities

Bill is a senior managing director, senior portfolio manager, and head of U.S. small-cap equities for Manulife Investment Management, responsible for the construction of U.S. small-cap core and value portfolios and the integrity of the research process for small-cap equity team. Bill focuses exclusively on U.S. small-cap investing, and his responsibilities include fundamental and industry-level research for consumer discretionary and utilities. Prior to joining the company, Bill spent 15 years investing in U.S. small-cap equities at UBS Global Asset Management. Prior to that, he invested in private debt and equity for the Travelers Companies, where he financed expansion, buyouts, recapitalizations, and spin-offs. He initiated some of Traveler’s earliest non-U.S. investments, and represented the company on two private equity fund advisory boards. Bill holds the Certified Financial Analyst designation.

  • Education: B.S., Trinity College (U.S.); M.B.A., Tuck School at Dartmouth College (U.S.)
  • Joined the company: 2013
  • Began career: 1986
Bill J. Talbot, CFA

Vehicles

At Manulife Investment Management, we offer investment strategies through a variety of vehicles to suit a broad range of client needs. Contact our institutional sales or consultant relations team to find out if this strategy/vehicle is offered in your region. 

  • Separate accounts

    Our separate accounts and separately managed accounts (SMAs) are designed for institutions and high-net-worth clients seeking tailored investment solutions and direct ownership of securities. 

  • CITs

    Our professionally managed collective investment trusts (CITs) are available in certain qualified retirement plans.

  • Mutual funds

    Mutual funds are liquid, professionally managed portfolios which are available to both institutional and retail investors.


Key facts

  • Inception date

    January 2014 

  • Strategy AUM (USD)

    $1.96 million

  • Benchmark

    Russell 2000 Index

  • Style

    Core

  • Average portfolio manager experience

    34 years

Important disclosures

*Strategies that utilize short selling are subject to the risk of additional volatility and decreased liquidity. Potential losses from an uncovered short position in an equity security are unlimited. Losses could occur if short sales were poorly correlated with the strategy’s other investments, or if the manager were unable to liquidate its positions because the market for securities subject to short sales is or becomes illiquid. Short sales may be restricted in response to market events and/or regulation. Furthermore, additional costs may be incurred in connection with short sale transactions, and the ability to continue to borrow a security is not guaranteed. Such restrictions and costs may prevent the full implementation of such investment strategies and may have a material adverse effect on them.

All information shown is as of September 30, 2020, unless otherwise indicated. Strategy-level information may differ from vehicle-specific information. Not all vehicles are available in all locations and may be offered through affiliates of Manulife Investment Management.


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