Managers & Models

Nuveen Small Cap Select

The world of small-cap stocks brims with potential, but identifying the true gems can be daunting. The Nuveen Small Cap Select Portfolio offers an actively managed strategy that seeks to unearth high-growth potential within this dynamic asset class.

Going Beyond the Index

Unlike many small-cap funds that track broad indexes, the Nuveen Small Cap Select Portfolio employs a rigorous bottom-up approach. Its experienced investment team delves deep into individual companies, conducting thorough fundamental analysis to identify:

• Emerging leaders: Companies with strong competitive advantages and the potential to become industry leaders.
• Sustainable growth drivers: Businesses with unique products, services, or market positions poised for long-term expansion.
• Strong management teams: Leaders with proven track records, clear vision, and a commitment to shareholder value.

Building a Concentrated Portfolio

Portfolio construction reflects the team's high-conviction philosophy. It typically holds 30-45 companies, allowing for in-depth research and concentrated exposure to its most promising small-cap picks. This focus aims to amplify the potential for alpha generation beyond a passively managed index.

When is This Strategy Best Positioned to Shine?

The Nuveen Small Cap Select Portfolio is expected to add value in specific market conditions:

• Periods of small-cap outperformance: When small-cap stocks outperform the broader market, the portfolio's focused selection can magnify returns.
• Early stages of economic cycles: Small-cap companies can be more nimble and responsive to economic shifts, potentially leading to outperformance during early growth phases.
• Market inefficiencies: The active management approach aims to exploit inefficiencies in the small-cap space, where research coverage is often limited.

Investors to Consider

This strategy might be suitable for investors seeking:

• High-growth potential: Accessing the potentially explosive growth of small-cap stocks with the potential for significant alpha generation.
• Active management expertise: Leveraging Nuveen's experienced team and research capabilities to navigate the complexities of small-cap investing.
• Higher risk tolerance: Small-cap stocks are inherently more volatile, so investors should be comfortable with potential fluctuations.

Unearthing Tomorrow's Giants

The Nuveen Small Cap Select Portfolio offers a compelling approach for investors seeking to tap into the growth potential and alpha generation opportunities within the small-cap universe. If you're comfortable with higher risk and believe in the power of active management, this portfolio could be a suitable avenue for achieving your investment goals.