PSigma has recruited former Credit Suisse manager James Abate to set up a large-cap US equity growth fund.
Abate made his name managing the Credit Suisse Trans-atlantic fund before moving to GAM where he ran an American focus equity fund.
He currently runs New York-based boutique Centre Asset Management and will run the PSigma fund from his US office.
PSigma managing director Ian Chimes admits the US has been a difficult area to sell for UK fund companies but he felt the opportunity to take on a manager of Abate’s experience was too good to refuse.
Chimes says: “With the American market so undervalued, particularly the large-cap growth arena, we felt that a manager of his ability could really produce some outstanding returns.”
Advisers have been broadly positive about the launch although they predict Abate will be a tougher sell than Psigma income manager Bill Mott.
Chelsea Financial Services managing director Darius McDermott says: “Given the dearth of US fund managers with good track records, the group has added a good alternative for its boutique offering. It all depends on whether advisers are ready to look at the US sector as it is not exactly a core area for the UK.”
Hargreaves Lansdown senior adviser Ben Yearsley says: “Everyone knew Abate from his time on the Transatlantic fund at CSAM but, despite starting off well at GAM, his performance tailed off. One problem that PSigma will face is that the US is hard to sell and although Abate is a good manager, it will not be easy to sell his name. like it was with Bill Mott.”