Neuberger Berman US SCp Intrs Val $I Acc |
by Chris Tate
With skilled investors in charge and a distinct approach, the Neuberger Berman Small Cap Intrinsic Value strategy, including the Neuberger Berman Intrinsic Value fund and offshore vehicles, sets itself apart from most. This strategy has a tenured leader and a close-knit investment team. Industry veteran Benjamin Nahum heads it, having managed the separate account version of this strategy since its 1997 inception. Comanagers Amit Solomon and James McAree are longtime allies of Nahum and have comanaged the U.S.-domiciled mutual fund since its 2010 launch. Like the managers, seasoned analysts Rand Gesing and Scott Hoina joined Neuberger Berman via a 2008 acquisition of their predecessor firm David J. Greene & Company. Research associate Dara Yudd joined in April 2023 to round out the six-member investment team. Given where most members are in their careers, adding a midcareer professional is a prudent step in managing the teams’ continuity. Their collective experience and industry credibility align well with their hands-on investment approach. They hunt for what they believe to be temporarily out-of-favor small-cap companies and aim to buy them when their share prices become mispriced because of complexity, cyclicality, or interrupted growth. Prospects must have catalysts for change and shareholder-friendly managements that consider strategic events such as spin-offs or acquisitions to unlock value. At times the team will push company management to enact change or inject strategic capital into investments to allow time for the company’s plans to be realized. The team spreads its bets across 70-100 stocks, and its relatively long investment horizon pairs well with its contrarian instincts. Despite its value moniker, it invests in wide-ranging opportunities beyond traditional value sectors. Technology has long been its largest absolute sector weighting, for instance. The managers' patient search for intrinsic value has rewarded investors over the long run. The U.S. mutual fund’s since-inception returns have beaten the Russell 2000 Index on a total and risk-adjusted basis with a remarkable consistency through July 2023, despite a tendency to lag during recessionary periods. It’s the reason this small-cap offering warrants acclaim. |
Morningstar Pillars | |
People | Above Average |
Parent | Above Average |
Process | Above Average |
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