First Manhattan Launches Actively Managed Equity ETF—FM Compounders Equity ETF (Ticker: FMCE)
First Manhattan, a $32B AUM investment advisory firm, launched the FM Compounders Equity ETF (FMCE), an actively managed ETF focusing on 25-35 U.S. publicly traded equities. The fund targets companies demonstrating consistent free cash flow generation and compounding capabilities. This marks First Manhattan's second ETF offering, following the April 2022 launch of FM Focus Equity ETF (FMCX). The new ETF employs fundamental research to identify high-conviction investment opportunities at favorable valuations relative to business quality, earnings, and expected long-term growth.
First Manhattan, una società di consulenza sugli investimenti con 32 miliardi di dollari in gestione, ha lanciato l'FM Compounders Equity ETF (FMCE), un ETF gestito attivamente che si concentra su 25-35 azioni americane quotate in borsa. Il fondo si prefigge di investire in aziende che mostrano una generazione costante di flusso di cassa libero e capacità di capitalizzazione. Questo segna la seconda offerta di ETF di First Manhattan, dopo il lancio dell'FM Focus Equity ETF (FMCX) nell'aprile 2022. Il nuovo ETF utilizza ricerche fondamentali per identificare opportunità di investimento ad alta convinzione a valutazioni favorevoli in relazione alla qualità dell'azienda, agli utili e alla crescita a lungo termine prevista.
First Manhattan, una firma de asesoría de inversiones con 32 mil millones de dólares en activos bajo gestión, lanzó el FM Compounders Equity ETF (FMCE), un ETF gestionado activamente que se centra en 25-35 acciones estadounidenses que cotizan en bolsa. El fondo tiene como objetivo invertir en empresas que demuestran una generación constante de flujo de efectivo libre y capacidades de capitalización. Esto marca la segunda oferta de ETF de First Manhattan, tras el lanzamiento del FM Focus Equity ETF (FMCX) en abril de 2022. El nuevo ETF emplea investigación fundamental para identificar oportunidades de inversión de alta convicción a valoraciones favorables en relación con la calidad del negocio, las ganancias y el crecimiento esperado a largo plazo.
퍼스트 맨해튼, 자산운용 규모가 320억 달러인 투자 자문 회사가 FM 컴파운더스 주식 ETF (FMCE)를 출시했습니다. 이 ETF는 25-35개의 미국 상장 기업에 집중하는 능동적으로 관리되는 ETF입니다. 이 기금은 지속적인 자유현금흐름 생성과 복리 능력을 보여주는 기업을 목표로 합니다. 이는 2022년 4월에 출시된 FM 포커스 주식 ETF (FMCX)에 이어 퍼스트 맨해튼의 두 번째 ETF 제안입니다. 새로운 ETF는 비즈니스 품질, 수익 및 예상 장기 성장과 관련하여 유리한 가치 평가를 가진 높은 확신의 투자 기회를 식별하기 위해 기초 연구를 사용합니다.
First Manhattan, une société de conseil en investissement avec 32 milliards de dollars d'actifs sous gestion, a lancé le FM Compounders Equity ETF (FMCE), un ETF géré activement qui se concentre sur 25 à 35 actions américaines cotées en bourse. Le fonds vise des entreprises démontrant une génération constante de flux de trésorerie libre et des capacités de capitalisation. Cela marque la deuxième offre d'ETF de First Manhattan, après le lancement de l'FM Focus Equity ETF (FMCX) en avril 2022. Le nouvel ETF utilise une recherche fondamentale pour identifier des opportunités d'investissement à forte conviction à des évaluations favorables par rapport à la qualité de l'entreprise, aux bénéfices et à la croissance à long terme attendue.
First Manhattan, eine Investmentberatungsfirma mit einem verwalteten Vermögen von 32 Milliarden Dollar, hat den FM Compounders Equity ETF (FMCE) lanciert, einen aktiv verwalteten ETF, der sich auf 25-35 an der US-Börse notierte Aktien konzentriert. Der Fonds hat zum Ziel, in Unternehmen zu investieren, die eine konstante Generierung von freiem Cashflow und Compounding-Fähigkeiten aufweisen. Dies markiert das zweite ETF-Angebot von First Manhattan, nach der Einführung des FM Focus Equity ETF (FMCX) im April 2022. Der neue ETF nutzt fundamentale Forschung, um hochgradig überzeugende Investitionsmöglichkeiten zu identifizieren, die im Verhältnis zur Unternehmensqualität, den Erträgen und dem erwarteten langfristigen Wachstum günstig bewertet sind.
- Large established firm with $32B AUM backing the ETF
- Portfolio focused on companies with proven cash flow generation
- Competitive fees offered for actively managed ETF
- None.
Insights
The launch of First Manhattan's FMCE ETF marks a significant expansion in the actively managed ETF space. With
The competitive fee structure and tax efficiency of the ETF wrapper, combined with First Manhattan's six-decade track record in fundamental research, positions FMCE as a noteworthy offering in the growing active ETF market. The focus on companies with durable free cash flow generation capabilities suggests a defensive growth strategy that could be attractive during periods of market uncertainty.
This product launch reflects broader industry trends toward active management in the ETF space, addressing investor demand for professional stock selection with the liquidity and accessibility of ETFs. The timing is strategic, as investors increasingly seek quality companies with strong cash flow profiles amid economic uncertainties. The expansion of First Manhattan's ETF lineup, following FMCX's launch, indicates growing institutional adoption of the ETF structure and could influence similar moves by other traditional asset managers.
High-Conviction Portfolio Focused on Companies Believed to Generate and Compound Free Cash Flow
First Manhattan Has Six Decades of Rigorous Fundamental Research Experience and a Track Record of Investing for Long-Term Appreciation
Zachary Wydra, CEO of First Manhattan, said, “FMCE offers a compelling opportunity to invest in companies that have demonstrated an ability to generate durable and recurring free cash flow, as well as the capacity to deploy their free cash flow to create shareholder value over time.”
“We use deep fundamental research to identify companies for investment,” said Himayani Puri, Partner, Head of Research at First Manhattan and Portfolio Manager for the First Manhattan Excelsior ETFs. “We seek to purchase shares at valuations that we believe are favorable relative to the quality of the company’s business, its earnings, and our expectation for long-term growth in value-per-share.”
FMCE is now the second ETF under the First Manhattan Excelsior ETFs banner, following the April 2022 launch of FM Focus Equity ETF (ticker: FMCX).
“We are pleased to deliver to investors and advisors another actively managed, research-driven, and tax-efficient portfolio with competitive fees,” said Ben Clammer, a Managing Director at First Manhattan and Product Manager for the First Manhattan Excelsior ETFs.
About First Manhattan
First
Central to the Firm is a deeply rooted commitment to research. Portfolio construction across First Manhattan is supported by the work of a dedicated research team consisting of senior analysts who focus on fundamental work to evaluate businesses from the bottom up, with the goal of creating a portfolio of companies believed to have the highest potential of generating outperformance over the long term.
Since its founding in 1964, First Manhattan has been independently owned and operated. The Firm and its principals were original investors in the entity that became known as Berkshire Hathaway.
About FM Compounders Equity ETF (ticker: FMCE)
Through fundamental research and bottom-up stock selection, FMCE seeks to invest in businesses that First Manhattan believes are highly resilient and capable of reliably generating and compounding free cash flow. FMCE comprises an actively managed portfolio with a target of 25 to 35 U.S. publicly traded equities. First Manhattan Co. LLC is the investment advisor to FMCE. For more information, please visit www.fmce.com.
Investors should consider the investment objective, risks, and charges and expenses of the Fund before investing. The prospectus and summary prospectus contains this and other information about the Fund and should be read carefully before investing. The prospectus may be obtained at 888.530.2448 or www.fmce.com.
The FM COMPOUNDERS EQUITY ETF is distributed by Northern Lights Distributors, LLC (Member FINRA/SIPC). Northern Lights Distributors, LLC is not affiliated with First Manhattan. The Fund is a new ETF with a limited history of operations for investors to evaluate. Unlike traditional ETFs, the Fund does not tell the public what assets it holds each day. Instead, the Fund provides a VIIV, calculated and disseminated every second throughout the trading day. Investing involves risk, including loss of principal. There is no guarantee that the Fund will achieve its investment objective. Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. This Fund may invest in a limited number of companies, which carries more risk because changes in the value of a single company may have a more significant effect, either negative or positive on the Fund's value. Because the shares are traded in the secondary market, a broker may charge a commission to execute a transaction in shares, and an investor also may incur the cost of the spread between the price at which a dealer will buy shares and the somewhat higher price at which a dealer will sell shares.
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Media Contact
Kenya
Chief Marketing Officer
First
212.756.3181
khenderson@firstmanhattan.com
Source: First Manhattan
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