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 $3.7 billion in assets under management as of June 30, 2021. 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

The investment environment has changed considerably in the last six months.  Several factors envisioned as potential threats have become real risks.  These include the Russia-Ukraine war, higher than expected inflation, surging energy prices and tighter monetary policy.  There are always worries on the horizon, but today’s uncertainties are more diverse than usual which is clouding the investment outlook.  Broad-based U.S. stock and bond indices both delivered negative returns for the first quarter, an unusual occurrence.  Stocks are correcting, but bonds have entered a bear market.  The Bloomberg U.S. Aggregate Bond Index declined -1.54% in 2021 (vs. +28.7% for S&P 500) and -9% year-to-date. The first quarter marked the bond index’s worst quarterly return since 1980.  Historically, bonds usually provide positive returns when stocks are negative – but not this year.  The Federal Reserve has adopted a more aggressive posture to fighting inflation, shifting from its extraordinarily accommodative policies to tightening.  Market participants expect the Fed to raise interest rates by 50 basis points at each of the next few meetings and begin reducing its balance sheet.  In response, the 10-year Treasury yield has risen from 1.51% at year end to 2.81% and the enthusiasm for equities is moderating.   We expect continued volatility as investors digest the various crosscurrents from the Russia-Ukraine war, higher inflation, Chinese COVID-19 lockdowns and headwinds to global growth.  A potential Russian bond default may also upset the market.  At this time, demand trends remain solid with reasonable growth forecast for real GDP and corporate earnings.  A summary of year-to-date index returns for the period ending March 31, 2022 is as follows:

Dow Jones Industrials             -4.1%         Russell 2500                   -5.8%
MSCI EAFE                                 -5.8%         S&P 500                           -4.6%
NASDAQ Composite                 -8.9%         Wilshire 5000                  -4.9%

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