Gurnee Group

Gurnee Group's Lux Fund opens disciplined access to micro-cap equities: an under-researched asset class where patient, active managers can still find an edge.

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Why Micro-Cap

The last inefficient
corner of public markets.

Micro-cap is the rare place where active management still has room to work.

01

Priced at a discount

Micro-cap companies often trade at a meaningful valuation discount to large caps (despite comparable profit margins and balance-sheet strength). This provides opportunity.

02

Highest long-term returns

Historically, micro-caps have delivered among the strongest long-term returns of any public-equity asset class. The same discount has repeatedly preceded the asset class's outperformance.

03

Structurally under-researched

Limited liquidity keeps large managers out, leaving thousands of names thinly covered. That neglect lets a disciplined active manager generate consistent excess returns.

The Lux Fund

Two disciplines.
One conviction.

Lux Fund invests in U.S. micro-cap companies through two complementary engines to pursue a modest, durable edge over its benchmark.

Qualitative

Luxαlpha™

Deep, bottom-up fundamental research. We get to know the businesses behind the tickers (the economics, the balance sheet, and the people running them) and concentrate where our conviction is highest.

Quantitative

Luxβeta™

A systematic, data-driven framework that screens the universe, surfaces overlooked candidates, and keeps risk, sizing, and exposure honest.

Universe
U.S. micro-capGenerally under $1B market cap
Benchmark
iShares Micro-Cap ETFA like-for-like yardstick (IWC)
Objective
Consistent net outperformanceA repeatable edge, compounded over a cycle

The People

Decades of micro-cap conviction.

Lux Fund is run by managers who have spent their careers in small- and micro-cap markets, at some of the most respected names in asset management.

J.P. Gurnee

Founder & Portfolio Manager
CFA · Hillsdale College, Economics

J.P. founded Gurnee Group on a simple conviction: that families and institutions deserve the same disciplined, institutional-grade process as everyone else. He leads the Lux Fund's investment philosophy and client relationships.

Earlier in his career, J.P. honed his craft at Columbia Threadneedle Investments, one of the world's established asset managers, before bringing that rigor home to Toledo. He is a CFA charterholder.

Background
Columbia Threadneedle Investments CFA Charterholder Hillsdale College

Tom Lettenberger

Portfolio Manager
CFA · CPA · M.Acc., University of Michigan

Tom is the architect of the firm's micro-cap strategy. In the investment industry since 1998, he pairs deep fundamental analysis with quantitative discipline (the very approach that powers Luxαlpha and Luxβeta).

He previously served as Managing Director and Head of Research at Quantitative Services Group, with earlier roles at BMO Asset Management, Columbia Management, William Blair & Co., and Arthur Andersen. Tom is a CFA charterholder and CPA, and a member of the CFA Institute and CFA Society of Chicago.

Previously
Quantitative Services Group BMO Asset Management Columbia Management William Blair & Co. Arthur Andersen

Let's talk about
what you've been missing.

If micro-cap belongs in your portfolio, or you'd simply like to understand the Lux Fund, we'd welcome the conversation.

Email J.P. Gurnee →
Emailjp@gurneegroup.com
Office24 South Huron Street, Toledo, OH 43604