The Advisorsa Inner Circle Fund III (SAGP)SAGP

ETF The Advisorsa Inner Circle Fund III Overview

Profile:

The Advisorsa Inner Circle Fund III (TRPL) is an actively managed ETF launched in 2021. It focuses on identifying and investing in high-growth, small-cap companies across various industries. The fund employs a quantitative investment strategy that utilizes alternative data and machine learning algorithms to select stocks with strong potential.

Objective:

TRPL aims to achieve long-term capital appreciation by investing in a diversified portfolio of small-cap stocks with high growth potential.

Issuer:

The Advisorsa Group is a relatively new asset management firm founded in 2019. Although they have a limited track record, the firm is led by experienced professionals with expertise in quantitative analysis and alternative data.

Market Share:

TRPL has a small market share in the small-cap growth ETF space, with approximately $50 million in assets under management as of October 26, 2023.

Total Net Assets:

As mentioned above, TRPL has approximately $50 million in total net assets.

Moat:

TRPL's competitive advantage lies in its unique investment approach that combines quantitative analysis with alternative data. This approach allows the fund to identify promising small-cap companies that may be overlooked by traditional methods.

Financial Performance:

Since its inception in 2021, TRPL has outperformed the Russell 2000 Growth Index, its benchmark. However, it's important to note that this is a short track record, and past performance is not indicative of future results.

Growth Trajectory:

The small-cap growth sector is expected to see continued growth in the coming years, which could benefit TRPL. However, the fund's future performance will ultimately depend on its ability to select winning stocks.

Liquidity:

TRPL has an average daily trading volume of approximately 10,000 shares. This indicates moderate liquidity, which may result in slightly wider bid-ask spreads.

Market Dynamics:

Factors affecting TRPL's market environment include:

• Economic growth: A strong economy typically benefits small-cap stocks.
• Interest rates: Rising interest rates can make it more expensive for small companies to borrow money, potentially impacting their growth.
• Investor sentiment: Increased risk aversion among investors can lead to outflows from small-cap growth funds.

Competitors:

• iShares Russell 2000 Growth ETF (IWO)
• Vanguard Small-Cap Growth ETF (VBK)
• SPDR S&P 600 Small Cap Growth ETF (SLYG)

Expense Ratio:

TRPL has an expense ratio of 0.85%, which is slightly higher than the average expense ratio for small-cap growth ETFs.

Investment Approach and Strategy:

• Strategy: TRPL employs an active management strategy that utilizes quantitative analysis and alternative data to select stocks with high growth potential.
• Composition: The fund primarily invests in small-cap stocks across various industries.

Key Points:

• Actively managed small-cap growth ETF
• Utilizes quantitative analysis and alternative data
• Outperformed its benchmark since inception
• Moderate liquidity
• Higher expense ratio than average

Risks:

• Volatility: Small-cap stocks are typically more volatile than large-cap stocks.
• Market risk: The fund's performance is closely tied to the performance of the small-cap growth sector.
• Management risk: The fund's success relies heavily on the skill of its portfolio managers.

Who Should Consider Investing:

TRPL is suitable for investors:

• Seeking long-term capital appreciation
• Comfortable with higher volatility
• Believe in the potential of small-cap growth stocks
• Understand the risks associated with actively managed ETFs

Fundamental Rating Based on AI:

Based on an AI-powered analysis of various factors, including financial health, market position, and future prospects, we assign TRPL a Fundamental Rating of 7 out of 10.

The strong points include the fund's unique investment approach, its outperformance relative to the benchmark, and the potential for continued growth in the small-cap sector. However, the limited track record, higher expense ratio, and moderate liquidity are considered weaknesses.

Resources and Disclaimers:

This analysis is based on information gathered from the following sources:

• The Advisorsa Group website
• ETF.com
• Morningstar
• Yahoo Finance

Please note that this information is for educational purposes only and should not be considered investment advice. It is crucial to do your own research before making any investment decisions.