Active management shines in a time of indexing

Passive management, or buying stocks that track an index, has caught on over the last several years. But changes in the economy and markets have made it easier for active managers to now show their worth, too. Active managers, those who pick stocks with the intent to beat an index and not just match its performance, have enjoyed a comeback in recent months and say that they’re now enjoying a more fertile ground for picking stocks. Money managers say that there are more bargains to be had now, especially among stocks that aren’t included in the major indexes tracked by large passive funds. Last year, 63% of active small-cap growth funds and 54% of active small-cap value funds beat their benchmarks, up from 29% and 18%, respectively, in 2016, according to Morningstar. The money that goes into passive index-tracking funds tends to gravitate toward the companies that make up an index. The result is those stocks get bid up in price because of the massive flows into passive products, while other stocks often remain cheaper. In addition to those cheaper stocks, active managers can use stocks that aren’t typically included in a benchmark to amplify returns. Azzad small cap growth

June 7, 2018 No Comments

Portfolio manager spotlight: Kayne Anderson Rudnick Investment Management

Although the stocks of large companies like Amazon and Alphabet have been among the market leaders since last year, in recent months they’ve started to lose some of their luster. In their place, small company stocks have assumed the top spot for outsized performance. The reasons some of the market’s biggest returns have come from some of its smallest companies include the recently passed tax overhaul and stronger earnings. Those tailwinds, along with an out-of-the-box stock-picking strategy, have helped Azzad’s small cap-growth portfolio manager Kayne Anderson Rudnick (KAR) stand out over the last quarter. “Our goal is to achieve excellent long-term investment results by owning a handful of businesses with enduring competitive protections purchased at attractive prices,” says KAR portfolio manager Todd Beiley, CFA, in a recent client note. “We employ thorough research in an attempt to understand the advantages and vulnerabilities of a business. We do not attempt to predict movements in the stock market or the economy, but instead we seek to understand companies and their worth so that we are in a position to recognize attractive prices when they arise.” Beiley and colleague Jon Christensen, CFA, co-manage Azzad’s small-cap growth portfolio, which has been a standout performer

May 21, 2018 No Comments

Kayne Anderson Rudnick to manage strategy for Azzad Ethical Wrap Program

(Falls Church, Virginia, 8/14/13) — Azzad Asset Management today announced an agreement with Kayne Anderson Rudnick Investment Management (KAR) to add the Los Angeles-based company to its lineup of institutional money managers. KAR serves as portfolio manager for the small-cap growth strategy in the Azzad Ethical Wrap Program effective August 1. The firm’s selection of KAR comes after an exhaustive due diligence and talent search process. Azzad ensures that all prospective managers agree to comply with their socially responsible Islamic investment process, in addition to confirming that they are able to meet strict performance and stock selection criteria. Azzad’s analysts back test and run their proprietary ISFA screening criteria on portfolios to gauge any potential impact on returns before entering into a business relationship. KAR both met and exceeded Azzad’s due diligence requirements for small-cap growth. In a statement, Azzad said: We are proud to include Kayne Anderson Rudnick in our lineup of world-class portfolio managers. Their experience, combined with a stellar investment process and solid team, give us every confidence that they will be a great fit for our wealth management clients. Today’s announcement shows our dedication to aligning Azzad Asset Management with some of Wall Street’s most reputable

August 14, 2013 No Comments