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 $3.0 billion in assets under management as of March 31, 2023. 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

Investor enthusiasm improved in the first quarter with the S&P 500 (SPX) return above 10%.  This has happened only 12 times since 1957. The other 11 instances generated a median return of 8.2% over the subsequent nine months, with only one negative return.  History suggests the current momentum will continue.  Interestingly, this marks just the third time since 1957 that the index produced a fourth quarter double-digit return followed by another 10% plus return in the subsequent quarter.  On a fundamental basis, the improving economy and favorable earnings outlook are supporting equities.  However, the Iran/Israel military conflict, sticky inflation, and rising long-term yields are causing near-term market turbulence.  Patience is necessary considering the strong upward thrust in stock prices over the last six months.  A summary of year-to-date index returns for the period ending March 31, 2024 is as follows:

Dow Jones Industrials 6.1%Russell 2500     6.9%
MSCI EAFE5.9%S&P 50010.6%
NASDAQ Composite  9.3%Wilshire 500010.0%

Contact Us

American Capital Management, Inc.
575 Lexington Avenue
30th Floor
New York, NY 10022
TEL: 212-344-3300
FAX: 212-658-9693
info@amcapmgt.com