Strong Capital Management Inc. has launched three no-load mutual funds aimed at retail investors.
The Menomonee Falls, Wis., money management firm last week rolled out the Strong Schafer Balanced Fund, the Strong Small Cap Value Fund, and the Strong Dow 30 Value Fund.
The Strong Schafer Balanced Fund will be managed by veteran portfolio manager David Schafer, whose firm, Schafer Capital Management, will act as a subadviser.
The fund will have a 60% weighting in equities, and the 40% in the fixed-income arena will have an initial focus on Treasuries. The equity strategy will follow Mr. Schafer's style of tracking companies that have a price-earnings multiple less than the Standard & Poor's 500 index, coupled with earnings-per-share growth prospects going out three years that are better than the S&P 500.
Mr. Schafer also manages the Strong Schafer Value Fund, which has more than $1.5 billion of assets.
Meanwhile, the Strong Small Cap Fund will be managed by Charles Rinaldi, who joined Strong from Mutual of America last month, where he ran the Aggressive Equity Fund. Strong Small Cap will focus on roughly 70 stocks from companies with market capitalization of roughly $1 billion, a spokeswoman said.
The Strong Dow 30 Value Fund will track the 30 blue-chip companies of the Dow Jones industrial average.
Half the fund's assets will maintain dollar-weighted positions in the 30 stocks in the index, the spokeswoman said. The remaining assets will be "overweighted" in the Dow 30, based on valuation measures including the "dogs" of the Dow theory, which invests in the top 10 yielding stocks in the index.
The fund will be managed by Charles Carlson and Richard Moroney, who are from Horizon Investment Services, the Hammond, Ind.-based subadviser.
