Managers of the new S&P STARS Opportunities Portfolio will primarily look for companies with caps of up to $7 billion and whose stock prices do not reflect anticipated earnings growth, the company said.
The BSAM portfolio management team will use S&P’s STARS ranking system as the foundation for stock selection.
Through an analytical process based on Standard & Poor’s highest-ranked 5-STARS stocks and Bear Stearns’ fundamental analysis, the new fund’s stock pickers will look for issues that can outperform the S&P MidCap 400 Index.
In order to take full advantage of market opportunities, the fund’s managers may also sell short stocks in the lowest ranked 1-STARS category.
The STARS Opportunities portfolio management team includes veteran Robert Natale, John Coyle, and John Massey.
The new fund is modeled after BSAM’s six-year old S&P STARS Portfolio, a large-cap core equity strategy, which attracted more than $2 billion in net inflows in 2000.