Denver-based investment manager Cambiar Investors has launched the Cambiar Aggressive Value ETF (NYSE Arca: CAMX), an actively managed exchange traded fund providing investors with exposure to a concentrated, best ideas strategy through the ETF wrapper. Created from the conversion of the Cambiar Aggressive Value Fund, CAMX is Cambiar’s first ETF and affords an opportunity to refine the predecessor mutual fund’s investment parameters.
“The American stock market has been a standout for more than a decade and is among the most exciting places to practice our proven Quality, Price, and Discipline approach to value investing,” said Brian Barish, president and CIO of Cambiar and portfolio manager for CAMX. “We believe the combination of increased tax efficiency and lower expenses, in conjunction with Cambiar’s longstanding price-sensitive investment discipline, results in an attractive proposition for investors looking to get greater exposure to high-quality value businesses.”
Like the predecessor fund, CAMX will maintain a relatively focused portfolio of 20-30 high-conviction stocks, which is designed to result in a high active share portfolio that seeks to provide strong absolute returns over the market cycle. CAMX will reference the Russell 1000 Value Index as its primary performance benchmark, but its concentrated approach can also be evaluated on an absolute return basis.
The launch comes after a year in which U.S. value stocks outperformed growth for the first time in over a decade.
“With the higher cost of capital and the performance woes of many long-duration growth stocks, we are seeing a great deal of interest in value,” Barish added. “For investors who believe there may be a shift in market leadership underway, we would position CAMX as an exciting satellite complement to any allocation model. A ‘best ideas’ value sleeve has the potential to deliver the kind of performance profile investors have come to only associate with riskier growth and speculative areas of the market.”
CAMX has an expense ratio of 0.59%.