I'm Jordan Stuart, a Client Portfolio Manager for the Federated Kaufmann Funds.
How is Federated Kaufmann Small Cap Fund positioned for 2019?
2019 seems to be the year of headwinds that are building, geopolitical, trade, the Federal Reserve, all these things are starting to impact the market. This is why, at Kaufmann, we focus on companies that can control their own destiny. They're secular growers, they're innovators, they've developed technology, or a new product, that they can grow in any kind of environment. Most of the companies that we own are less susceptible to some of the macro events, and even if they are impacted by that, we use that as an opportunity.
How does the Federated Kaufmann team navigate market volatility?
We think market volatility is an opportunity for our funds. We focus on companies that have secular growth tailwinds, companies that have innovation, technology, or a new product that's driving their business. So they tend to be less sensitive to some of the macro headwinds, and we use some of the volatility as an opportunity. If those stocks tend to sell off in a macro event, we have cash available at most times to purchase those names that we think have good fundamentals at a better price.