First Manhattan, an independently owned and operated investment advisory firm, today announced the launch of its inaugural exchange-traded fund, FMC Excelsior Focus Equity ETF (ticker: FMCX).
The fund is an actively managed ETF that invests in First Manhattan’s highest-conviction ideas driven by its rigorous, 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.
Zachary Wydra, CEO of First Manhattan, says: “We are excited to strategically expand First Manhattan’s product offerings with the launch of our very first active ETF. 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 US equities with no single position expected to comprise more than 10 per cent (at cost) of the Fund’s portfolio. Unlike many traditional ETFs that publicly report assets it holds each day, FMCX calculates and disseminates a Verified Intraday Indicative Value (“VIIV”) throughout the trading day. The Fund’s annual expense ratio is 0.70 per cent.
Himayani Puri, FMCX Portfolio Manager, Senior Managing Director, and Director of Research at First Manhattan, says: “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.”
The launch of FMCX follows First Manhattan’s September 2021 agreement with Precidian Investments, LLC to license ActiveShares, Precidian’s proprietary actively managed ETF structure. The structure enables a company to deliver actively managed investment strategies in an ETF vehicle without disclosing holdings on a daily basis.