There is no substitute for experience

Investing for growth

American Capital Management is dedicated to helping our clients achieve their goals through investing in a disciplined growth strategy.

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About Us

American Capital Management, Inc. (ACM) is a boutique investment management firm, founded in 1980, with over $2.0 billion in assets under management. We believe our firm and investment approach are unique relative to most investment management organizations. We invest for growth, focusing on active management of innovative quality small and medium-sized companies — the most rapidly growing sector of the economy. The firm is a registered investment advisor with the SEC.

Our Objective: to provide superior absolute and risk-adjusted returns relative to the major indices
  • Investing in small to medium-sized companies (generally between $100 million and $2.5 billion in sales at time of initial purchase) with potential to grow at a rate substantially greater than the S&P 500.
  • Emphasizing companies with proven management teams, strong R&D efforts, dominant market positions, and effective sales and marketing organizations.
  • Focusing on companies that possess the necessary profitability and financial strength to fuel and support their growth.
  • Team-based approach results in concentrated, high-conviction portfolios.
ACM Serves a Diverse Client Base
  • Our firm manages assets for institutions, foundations, pensions, single and multi-family offices, and high-net-worth individuals.
We Are Committed to Enduring Relationships
  • ACM is proud to have a history of working with clients through multiple market cycles, generational shifts, and life changes.
Deep Expertise
  • All investment personnel at ACM are dedicated to one strategy, Small and Medium Company Growth. This creates a focused environment where resources are directed where they are most needed.

Key Advantages

Exclusive focus

Subject Matter Experts in growth investing.

Long-term perspective

We invest in businesses with an understanding that market fluctuations are a normal part of asset management.

Revenue size is the focus of our universe

Management can influence revenues whereas market cap is a product of market opinion. This aligns with ACM’s long-term perspective.

Concentrated portfolios

Dedicating time and attention where it is most valuable.

Proven Track Record of Success

An investment process that yields results.

Control to mitigate risk

Carefully researched, strong businesses are their own best tools to manage risk within a portfolio.

     

Investment Philosophy

We believe that above-average returns can be achieved by owning a diversified group of small to medium-sized companies growing at a rate greater than the average company in the S&P 500.

  • We focus on revenue rather than market capitalization.
  • Our approach provides opportunities to hold individual securities as they grow from small to medium-sized businesses.
  • As long-term investors, we own our holdings considerably longer than the industry average, which has resulted in deep institutional knowledge of our investments, higher returns, lower turnover and greater tax efficiency.

 

Quality and Selectivity

  • We identify a proprietary universe of 100 companies based upon a consistent and proven research-driven process.
  • We follow companies closely, typically over a multi-year period, before committing to an investment.
  • We strongly favor growth companies with strong management, commitment to research and whose products and/or services enjoy dominant market positions, financial strength and profitability, and proven marketing organizations.

A Consistent and Proven Investment Process

Our firm employs a fundamental, benchmark-agnostic, and research-driven approach to asset management.

We consider ourselves owners of businesses and make decisions with a long-term investment horizon.

Focusing on innovative small and medium-sized growth companies enables us to hold our positions for an extended period of time. This has resulted in higher returns, lower turnover, and greater tax efficiency for taxable investors.

The strategy emphasizes revenue instead of market capitalization to evaluate size.

All members of the investment team are generalists, as we believe this produces the best framework for informed opinions and productive dialogue.

Commentaries

Overview

Few investment strategists predicted the market would increase 20% by mid-July. Last December’s swoon rattled investor confidence and most investors expected only a modest rebound.  However, the S&P 500 defied expectations and hit new highs on July 24.  The stock market continues to confound those in doubt and reward those with patience.  At this juncture, the odds favor meaningful returns this year as momentum is sustained by the prospect of interest rate cuts.  Is there anything to worry about?  Yes, doubt is inevitable, but favorable opportunities often emerge in the absence of major problems.  Today, markets continue to thrive on skepticism.  News associated with politics or trade policy may jostle the markets, but the fundamental underpinnings of the economy and corporate earnings remain solid despite moderate growth.  Although a correction may occur, the investment outlook favors equities due to the combination of moderate earnings growth, low interest rates and mild inflation.  Importantly, confidence in the financial markets has been restored.  A summary of index returns for the year-to-date ending June 30, 2019 is as follows:

Dow Jones Industrials            15.4%        Russell 2500                    19.3%
MSCI EAFE                                14.0%        S&P 500                           18.5%
NASDAQ Composite                21.3%        Wilshire 5000                 18.7%

Contact Us

American Capital Management, Inc.
551 Madison Avenue
Suite 902
New York, NY 10022
TEL: 212-344-3300
FAX: 212-344-2045
info@amcapmgt.com