Pennsylvania-based Logan Capital, an independent, privately owned Registered Investment Advisor, has launched its first ETF, the Logan Capital Broad Innovative Growth ETF (NYSE: LCLG).
The firm writes that the ETF employs a multifactor ranking algorithm to analyse and select securities. It seeks companies applying innovative technologies and ideas to common business models to gain a competitive advantage. Logan looks for companies that have increasing earnings tied to pricing power, benefit from an economic tailwind, and that are trading in a way that would support a long-term upward move in price, the firm says.
The fund features investments selected through a three-part analysis: top-down macroeconomic analysis, fundamental company analysis, and technical analysis to confirm security selection—leading to selection and investment in growth companies whose earnings are less affected by economic cycles.
The Broad Innovative Growth ETF consists of a fairly concentrated portfolio of 45-55 U.S.-traded large cap growth stocks, each with at least a USD5 billion market capitalisation at time of purchase.
“Economic headwinds and uncertainty in the market provide nimble companies who can quickly adapt their business model opportunities to thrive,” says Stephen Lee, Founding Principal of Logan Capital. “As leaders in the large cap growth sector, we believe our slightly aggressive approach in identifying innovative companies that also have proven track records of delivering profits will continue to drive exceptional earnings and ultimately reward patient investors.”
The Broad Innovative Growth Fund will focus on companies that are continuing to invest in and enhance their strategic advantages. The Broad Innovative Growth Fund implements a true large-growth strategy. Slightly on the aggressive side, LCLG pairs well with growth at a reasonable price (GARP) and large cap value strategies.
“The Logan Capital team has extensive experience within the large cap growth sector,” says Dana Stewardson, Principal at Logan Capital. “The LCLG ETF will provide investors with the opportunity to capitalise on growing companies in the midst of a technological revolution.”