With two new funds complementing its 13-year old small cap flagship fund, the Franklin, Tennessee-based Satuit Capital Management [profile] is now ramping up its efforts to proselytize the strength and stamina of the equity bull market.

"I couldn't be more bullish about the U.S. domestic equity market. I look at the next six or seven years, and I am very excited. I think that the U.S. domestic equity market will be the best performing equity market to the end of this decade," Satuit's chief investment officer Robert Sullivan recently told MFWire.

For 13-years, Sullivan and his team managed the Satuit Capital U.S. Emerging Companies Fund, which invests at least 80% of its assets in a diversified portfolio of U.S. common stocks of emerging companies. It considers a company to be an emerging company when its market capitalization, at the time of purchase, is $500 million or less.

As of June 30, the fund garnered five Morningstar stars for 10-year performance, four-stars for 5-year performance, and three-stars for three year performance.

Aiming to leverage the cachet developed with the emerging companies fund, Satuit recently launched two new funds, the Satuit U.S. Small Cap, and Satuit Capital U.S. SMID Cap.

Now the firm is hitting the road, preaching the merits of the equity markets to advisors.

According to Sullivan, because the emerging company fund is 13-years old, its client base is "more classic," with established relationships across the RIA and broker-dealers such as the four wirehouses, as well as the RIA channels like Schwab, Fidelity, and TD Ameritrade.

Because the two other funds are newly launched, Satuit's national accounts team, including director Jim Espinales and Arthur Brachowski, are concentrating on the RIA channels. Both executives also serve as senior portfolio strategy specialists.

Sullivan's equity message to advisors has two levels. First, buy index funds to get broad coverage to the large cap funds. The large cap space, he says, has too much information available for managers to easily add alpha. Consequently, it is best to just go with the growth of the market as a whole.

"We don't think there is a lot of value to be added in most larger cap stocks, there is too much information out there," he said.

Second, advisors should be looking for active managers in the small, mid and amid-space for alpha. This is where Satuit hopes to gain converts.

"Our track record in the emerging company space clearly shows the alpha. We were the number one performing small cap during 2001 to 2007. Now that we have these two new funds, we can get more people interested in how we invest in this space," Sullivan said. 

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