Voya Investment Management, part of the Voya Financial group, has acquired small-cap growth specialist Tygh Capital Management.
Under the deal, the full team behind the TCM Small Cap Growth Fund, which manages around $520 mn in assets, will join Voya’s investment arm. The transaction is expected to close by March 2022.
Employees moving across to the new firm include CEO and chief investment officer Richard Johnson, president and CFO Jeff Curtis, and portfolio managers Michael Coyne, Scott Haugan and Mitchell Brivic.
Subject to shareholder approval, the TCM Fund will be reorganized into a new mutual fund called Voya Small Cap Growth, which is slated to launch in the second quarter of 2022.
Founded in 2004, Portland, Oregon-based Tygh offers two investment approaches. The small-cap growth strategy buys companies between $300 mn-$3 bn and aims to outperform the Russell 2000 Growth Index, while the small-mid cap growth strategy can invest in companies between $500 mn-$10 bn and uses the Russell 2500 Growth Index as its benchmark.
‘We continue to invest across our investment platforms to bring best-in-class solutions to our clients. Small-cap growth is an important focus and an area where active managers like Voya can generate meaningful alpha for investors,’ says Christine Hurtsellers, CEO at Voya IM, in a statement.
‘This is a great opportunity for our team to enhance our ability to produce long-term performance for our clients. Over the next few months, we will work to ensure a smooth transition,’ adds Johnson.
Some investors are predicting a positive 2022 for US small caps after spluttering performance this year. Small caps have attractive valuations compared to their larger peers and are less at risk from potential business taxes supported by the Biden administration, noted a recent Reuters article.
‘Smaller-cap stocks on a relative basis just look much more attractive,’ Ryan Jacob, chief investment officer at Jacob Asset Management, told the news service.
