Channing Capital Management launches first listed investment fund

Channing Capital Management launches first listed investment fund

One of the nation’s largest black-owned wealth managers, Channing Capital Management has launched its first publicly traded mutual fund.

The new investment vehicle is called the Channing Intrinsic Value Small-Cap Fund (Ticker: OWLLX).

The investable universe consists primarily of small-cap domestic stocks. The fund focuses on quality companies that the portfolio management team believes are attractively valued, according to a press release.

Channing reports that it has built a solid 16-year track record for its flagship small-cap strategy within the institutional market. The Chicago-based company says it currently manages more than $3.4 billion in total assets under management as of June 30, 2021. It was number 10 on the most recent BE Asset Managers list. Founded in 2003, the investment management boutique provides investment advisory services to institutional investors, its website shows.

Channing’s founder and co-CEO Rodney Herenton added this in a statement:

“The mutual fund gives both institutional and private investors access to Channing’s small-cap strategy, allowing us to further diversify our distribution and channel mix. In addition, the mutual fund helps to strengthen our brand awareness and identification in the market, which I am very excited about as we continue to expand our product offering and scale our business as a boutique investment firm.”

With approximately $2.2 billion in assets in the small-cap strategy, Channing says it plans to further expand its client base across corporations, foundations and endowments, along with sub-advice and platform capabilities.

Channing’s founder, co-CEO and chief investment officer Wendell Mackey added this statement:

“The launch of our mutual fund enables us to bring our proven, small business, distinctive, intrinsic value approach to a broader market. We look forward to our mutual fund serving our clients and potential clients with their different channel needs.”

Herenton gave this email response to Black Enterprise about why his company has now launched the mutual fund based on how the stock market has performed this year:

“Institutional prospects have asked us to offer a public investment fund because of their interest in our small-cap value strategy. As long-term investors, we are less concerned about short-term market shocks and decided to launch our own fund to capitalize on the demand for small cap capacity while diversifying our channel mix.”

Channing Capital Co-Founder Rodney B. Herenton
Channing Capital Co-Founder Wendell E. Mackey

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