FMCX, listed on the NYSE on April 25, is an semi-transparent actively managed ETF that invests in First Manhattan’s highest-conviction ideas driven by its fundamentals-based research.
The fund will invest in companies that First Manhattan believes possess durable competitive advantages and long-term growth prospects, management teams with strong governance practices, and attractive opportunities to reinvest cash profits, according to a statement from the firm.
“We are excited to strategically expand First Manhattan’s product offerings with the launch of our very first active ETF,” Zachary Wydra, CEO of First Manhattan, said in a statement. “Over the past six decades, we have honed a distinctive, fundamentals-based investment approach, and we are compelled to offer this strategy to a broad range of institutional and retail investors in the form of an innovative ETF.”
FMCX intends to hold long-term positions in a focused portfolio of 25 to 30 publicly traded U.S. equities with no single position expected to comprise more than 10% (at cost) of the fund’s portfolio. The fund charges an expense ratio of 0.70%.
The fund uses the Precidian ActiveShares structure, enabling the firm to deliver actively managed investment strategies in an ETF vehicle while limiting disclosure of full holdings to a frequency on par with mutual funds, as opposed to daily.
“We will continue to apply our distinctive investment process to identify opportunities in companies that are attractively valued relative to the quality of their business, our view of their earnings trajectory, and our expectation for long-term growth in value-per-share. We have a business owner’s mindset and engage extensively with management teams,” Himayani Puri, FMCX portfolio manager, senior managing director, and director of research at First Manhattan, said in a statement.
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