Legg Mason fund added to Hargreaves Lansdown Wealth 150
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The Legg Mason US Smaller Companies fund has been added to the Hargreaves Lansdown Wealth 150 fund buy-list.
The fund, managed by Lauren Romeo, manager at Legg Mason subsidiary Royce & Associates, was praised for its focus on “robust, cash-generative businesses”.
Richard Troue, analyst at Hargreaves Lansdown, highlighted Romeo’s approach to picking companies that can survive in all market conditions.
He says: “This means she looks for companies with strong balance sheets, low debt, and the ability to generate cash, which can be reinvested to grow the business, or paid out as dividends.”
The analyst says Romeo was able to add to technology and some healthcare holdings during the market volatility of 2011.
He says the manager has also invested in precious metals producers such as Allied Nevada Gold and Pan American Silver, as the metals have retained value while currencies have devalued as a result of quantitative easing.
Troue says: “Many of tomorrow’s leading companies are likely to be drawn from today’s pool of smaller firms, although they are a higher risk investment proposition and some will fail.”
He adds: “This fund is run by an experienced team who have built an impressive track record.
“The fund has delivered growth of 103% since launch in 2004 compared to 76% for its benchmark, the Russell 2000 Index, though past performance is not a guide to future returns.”
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