US Large Cap

An actively managed strategy seeking to provide enduring, added value in the world's largest and most liquid equity market.

Differentiated approach to US large cap equities

Our US Large Cap strategy offers investors access to a diversified portfolio of high conviction US large cap investment ideas. Managed by Schroders’ Global Equities team, the strategy seeks to exploit persistent market inefficiencies, investing in underappreciated companies that will ‘surprise’ the market by delivering forward earnings growth ahead of expectations; stocks we believe have a positive “growth gap”. This approach harnesses proven drivers of outperformance, underpinning a strategy designed to deliver performance consistency and attractive risk adjusted returns.

How do we add value in the world's largest & most liquid equity market?

Capitalise on long-term mispriced growth (core positions)

Most of the portfolio invests in companies where we believe consensus underestimates the long-term forward earnings potential. Markets are increasingly myopic and often fail to look far enough ahead when appraising the earnings power of great companies.

Exploit nearer-term inflection points (opportunistic positions)

A smaller allocation of the portfolio is invested in nearer-term, tactical opportunities to exploit instances where the market overreacts to news flow or fails to correctly model catalysts that will change a company’s growth trajectory.

Actively manage downside risk

We strengthen decision-making through an innovative and dynamic risk framework, designed to enhance downside protection and deliver attractive risk-adjusted returns.

Fund objectives and investment policy

You can find more information on the fund including literature and performance data on our fund centre.

“I look for companies where I have high conviction in their ability to generate positive earnings surprises.”

Frank Thormann

Portfolio Manager, Global Equities

Related insights

What are the risks?

Important Information

Marketing material for Professional Clients only

This document contains indicative terms for discussion purposes only and is not intended to provide the sole basis for evaluation of the investment solutions described.

Any reference to regions/ countries/ sectors/ stocks/ securities is for illustrative purposes only and not a recommendation to buy or sell any financial instruments or adopt a specific investment strategy.

The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations.

Past Performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of investments to fall as well as rise.

Schroders has expressed its own views and opinions in this document and these may change. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. No Schroders entity accepts any liability for any error or omission in this material or for any resulting loss or damage (whether direct, indirect, consequential or otherwise), in each case save to the extent such liability cannot be excluded under applicable laws.

The data contained in this document has been sourced by Schroders and should be independently verified. Third party data is owned or licenced by the data provider and may not be reproduced, extracted or used for any other purpose without the data provider’s consent. Neither Schroders, nor the data provider, will have any liability in connection with the third-party data. This document may contain “forward-looking” information, such as forecasts or projections. Please note that any such information is not a guarantee of any future performance and there is no assurance that any forecast or projection will be realised.

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US Large Cap – risk considerations

  • Liquidity risk: In difficult market conditions, the portfolio may not be able to sell a security for full value or at all. This could affect performance.
  • Operational risk: Operational processes, including those related to the safekeeping of assets, may fail. This may result in losses to the portfolio.
  • Currency risk: The portfolio may lose value as a result of movements in foreign exchange rates.
  • Derivatives risk – Efficient Portfolio Management: Derivatives may be used to manage the portfolio efficiently. A derivative may not perform as expected, may create losses greater than the cost of the derivative and may result in losses.
  • Emerging Markets & Frontier risk: Emerging markets, and especially frontier markets, generally carry greater political, legal, counterparty, operational and liquidity risk than developed markets.
  • Counterparty risk: The portfolio may involve contractual agreements with counterparties. If a counterparty is unable to fulfil their obligations, this may result in losses.
  • Performance risk: Investment objectives express an intended result but there is no guarantee that such a result will be achieved. Depending on market conditions and the macro economic environment, investment objectives may become more difficult to achieve.