President Donald Trump’s pro-business initiatives should benefit U.S. small and mid cap stocks and, together with a potential re-normalization of interest rates, provide significant opportunities for active managers, Robert Lanphier and Dan Crowe, co-portfolio managers on William Blair’s Small-Mid Cap Growth and Mid Cap Growth strategies, said recently when speaking with Citywire and Investment Europe.

“There is no question [President Trump’s initiatives] would have a meaningful positive impact on the U.S. economy and the U.S. stock market,” Lanphier told Citywire, adding that small and mid caps should be disproportionate beneficiaries.

However, a policy might be “good for the economy, but not necessarily good for the companies,” Crowe told Investment Europe. “We are going to see companies have some expense pressures that they’ve not had for a decade.”

As new challenges arise, companies with differentiated products and services will be in a better position to adapt to the changing landscape.

In Lanphier’s interview with Citywire he notes that our goal, as an active manager focused on quality growth, is to determine which companies can sustain earnings growth regardless of whether the economy is growing or weakening.

“There is a need to see the ability to differentiate between high and low quality and high and low growth stocks in the market. That is difficult when free money seems to float all boats,” Lanphier told Investment Europe.

As the interest-rate environment starts to normalize, “you’re going to start to see more differentiation,” Lanphier told Citywire. “So I think there is still a place for active management.”

Read Full Investment Europe Interview

Watch Rob Lanphier’s interview with Citywire

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Please carefully consider the Funds’ investment objective, risks, charges, and expenses before investing. This and other information is contained in the Funds’ prospectus, which you may obtain by calling +1 800 742 7272. Read it carefully before you invest or send money. Investing includes the risk of loss.

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Factual information has been taken from sources we believe to be reliable, but its accuracy, completeness or interpretation cannot be guaranteed. Investments are subject to market risk. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be interpreted as investment advice, as an offer or solicitation, nor as the purchase or sale of any financial instrument. Statements concerning financial market trends are based on current market conditions, which will fluctuate.

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Copyright © 2017 William Blair & Company, L.L.C. "William Blair” is a registered trademark of William Blair & Company, L.L.C. No part of this material may be reproduced in any form, or referred to in any other publication, without express written consent.

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Please carefully consider the Funds’ investment objective, risks, charges, and expenses before investing. This and other information is contained in the Funds’ prospectus, which you may obtain by calling +1 800 742 7272. Read it carefully before you invest or send money. Investing includes the risk of loss.

Any statements or opinions expressed are those of the author as of the date of publication, are subject to change without notice as economic and markets conditions dictate, and may not reflect the opinions of other investment teams within William Blair Investment Management, LLC or the Investment Management Division of William Blair & Company, L.L.C.

This content is for informational and educational purposes only and not intended as investment advice or a recommendation to buy or sell any security. Investment advice and recommendations can be provided only after careful consideration of an investor’s objectives, guidelines, and restrictions.

Factual information has been taken from sources we believe to be reliable, but its accuracy, completeness or interpretation cannot be guaranteed. Investments are subject to market risk. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be interpreted as investment advice, as an offer or solicitation, nor as the purchase or sale of any financial instrument. Statements concerning financial market trends are based on current market conditions, which will fluctuate.

William Blair does not provide legal or tax advice. Please consult your tax and/or legal counsel for specific tax questions and concerns.

Distributed by William Blair & Company, L.L.C., member FINRA/SIPC.

Copyright © 2017 William Blair & Company, L.L.C. "William Blair” is a registered trademark of William Blair & Company, L.L.C. No part of this material may be reproduced in any form, or referred to in any other publication, without express written consent.

Statement of Financial Condition | NMS Rule 605 & 606 | Business Continuity Plan | UK Stewardship Code
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