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

We are in uncharted waters.  A global pandemic is engulfing the world and America is in a battle to defeat a new kind of threat.  As investors, we learn to “expect the unexpected,” but the effects of this pandemic have been shocking, leading to a classic black swan event – a rare, unpredictable occurrence with severe consequences.  Responses to this unforeseen pandemic include regional lockdowns, social distancing and the closure of many activities and businesses.  As a result, stock markets around the world tumbled, energy prices collapsed, and government bond yields sank to new lows.  The S&P 500 experienced the swiftest 35% loss in stock market history between February 19 and March 23 and March was the most volatile month ever recorded.  The sense of panic paralleled declines in 1974, 1987, 2002 and 2008 – infamous years in stock market history.  We are fighting an invisible enemy for an indeterminate period with limited visibility. 

For now, the priority is to support the healthcare system and mitigate this highly contagious infection.  The next priority is to safely restart the economy.  Fortunately, the largest nations have responded forcefully with policy responses that are significant and historic in size and scope.  Stock markets will recover as investors gain confidence that the virus is contained and normal activities can resume.  Just as we saw a historic drop in prices, we are experiencing an epic rally.  The Dow Jones Industrials gained 15% for the two weeks ending April 17 – its best two-week return since 1938.  We expect the stock market to back-and-fill and rebuild its momentum over time.  It may also retest the March lows.  During volatile times, it is important to stay focused on the company fundamentals that support individual equities rather than the overall stock market.  Stock prices are heavily influenced by indiscriminate short-term trading patterns caused by computerized trading programs, panic selling and margin calls.  We try to insulate our long-term decisions from this frenzy of activity.  Furthermore, it is important to maintain a consistent and disciplined investment approach that emphasizes quality growth companies with strong cash flows and healthy balance sheets.  We patiently await a more favorable environment as the virus’s effects will diminish.  A summary of index returns for the quarter ending March 31, 2020 is as follows:

Dow Jones Industrials            -22.7%        Russell 2500                    -29.7%
MSCI EAFE                                -22.8%        S&P 500                            -19.6%
NASDAQ Composite                -14.0%        Wilshire 5000                 -20.8%

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