US boutique partners with Harrington Cooper to launch US value fund in Europe

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Gary Rafferty of Snyder Capital

US-based equity fund management boutique Snyder Capital Management has teamed up with Harrington Cooper to launch a US value fund marketed across Europe to institutional investors.

The HC Snyder US All Cap Equity fund will serve as Snyder’s flagship strategy in Europe and Harrington Cooper has secured commitments from several European institutions to launch the seed share classes in order to bring the fund up to $100m within the first 90 days.

Snyder’s investment style favours value and quality by investing in high-quality, underappreciated companies trading at substantial discounts to intrinsic value combined with favourable upside/downside return metrics.

“Investments are made in misperceived areas of the market and with long-term horizons, then typically held longer term than traditional value managers might”, according to the boutique.

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Prefering companies that go “under the radar”, the $3.4bn boutique targets less glamourous areas of the market such as waste management and other industrial companies with leading positions, skills or technologies.

The fund will charge an AMC of 35bps during the first three months, with this founder’s charge limited to a maximum of 15 investors. After that, the standard institutional AMC will be 75bps.

Gary Rafferty, portfolio manager of Snyder Capital, said: “We are excited to have partnered with Harrington Cooper for the launch of our flagship strategy into the European market. We see great appetite among European investors for our concentrated, quality value, long-term approach to equity investing and look forward to working with our new distribution partners.”

Harry Dickinson, managing partner of Harrington Cooper, added: We are delighted to work with Snyder Capital Management and their experienced team. Snyder Capital Management are an exceptional boutique that has been operating below the radar for over two decades, hitherto managing money for an exclusively institutional client-base.

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“Their US All Cap Value Equity strategy has consistently outperformed the S&P 500 since its launch in 2008, and has generated consistent returns uncorrelated to most other managers and both the growth and the value style. We look forward to bringing this strategy to the fore across Europe and are expecting to see significant AUM growth in the coming months.”

Snyder Capital Management was founded in 1984 by Alan Snyder and began managing the Small Cap Value strategy in early 1985. It was sold to what is now Natixis in 1997, before the team bought itself back out in 2015 by its second-generation leadership.

It is now 100% employee owned with all four of the senior investment team owning meaninful stakes in the business.