From Envestnet | PMC:
AB Large Cap Growth Watch List Addition
Michael Manning, CFA
Senior Investment Analyst, Envestnet | PMC
Summary
- Envestnet | PMC (“PMC”) is adding the AB US Large Cap Growth and the AB Large Cap Growth Fund to our Watch List. They will retain their current Approved-Qualitative research status with the Select attribute.
- PMC continues to have a very high opinion of the AB strategy and fund; however, the addition to our Watch List is due to the impending retirement of long time PM Frank Caruso. Mr. Caruso announced his retirement over a year ago, but it takes effect on March 31, 2024.
- John Fogarty and Vinay Thapar, currently Co-CIOs of AB’s US Large Cap Growth team, will assume joint leadership of the team and the portfolio upon Mr. Caruso’s retirement. They will also keep their titles as Co-CIOs. PMC has faith in their expertise and expect no disruptions amid this transition but will monitor near term.
Rationale
Mr. Fogarty and Mr. Thapur have worked closely with Mr. Caruso for over a decade. Both individuals were formally promoted to Co-CIOs on December 31, 2021, in recognition of their leadership roles and contributions to the team’s success. Since then, Mr. Caruso, Mr. Fogarty, and Mr. Thapur have been jointly responsible for all portfolio management, business, and team management decisions. Previously, both Mr. Fogarty and Mr. Thapur served as PMs and held analyst positions on the team earlier in their careers.
PMC has been aware of this eventuality for a while now, so Mr. Caruso’s retirement was not surprising when announced about a year ago. PMC is confident in Mr. Fogarty and Mr. Thapur’s long tenure on the team, their experience working with Mr. Caruso, their leadership qualities, and the depth and breadth of their expertise. Due to this mosaic, PMC expects a seamless transition. Additionally, AB has said there will be no changes to the investment process or philosophy, and we welcome Mr. Fogarty and Mr. Thapur’s continued leadership on the team and the portfolio.
While PMC does not expect any material impact on the investment process or performance due to this change, we find it prudent to place these products on Watch near term. PMC plans to monitor stock selection and performance when Mr. Caruso officially steps aside and will provide updates as necessary.
TC140590(0324)1