US Active Equities

Why active matters in the US

The U.S. is the world’s largest and most liquid financial market, which has historically offered exceptional transparency, accessibility and depth. However, rising concentration among a small group of dominant companies is reshaping the opportunity set, often masking underlying dispersion and reinforcing the importance of active stock selection.

Key Points

01.

Unlocking alpha opportunities in US equities

The BGF US Flexible Equity Fund is built to address today’s levels of concentration in the U.S. equity market. The fund aims to mitigate concentration risk through a high conviction, flexible, style agnostic portfolio, balancing risk across mega caps and AI names while seeking to capture differentiated alpha across the US market.

02.

A high conviction, flexible solution

The Fund harnesses BlackRock’s US Fundamental Equities platform strongest ideas drawing on both the Growth and Value pillars. This setup provides access to a vast and diverse pipeline ensuring plenty of competition for capital and a high conviction approach.

03.

An earnings first approach

Our investment philosophy takes an earnings first approach, investing where we have a differentiated view on a company’s 3 to 5-year earnings potential. The fund aims to translate our deep understanding of the fundamentals, and use systematic tools, to enhance alpha potential.

Transcript
What’s behind the ongoing appeal of US equities? The US continues to stand out as a compelling strategic market. The economy remains resilient, earnings are broadening and innovation continues to drive long-term growth, supporting the US's role as a key component within global portfolios. Looking ahead, we expect one of the defining features of the US market's ongoing resilience to be its improving breadth. After a stretch dominated by a few megacaps, we’re now seeing market leadership widen, creating a richer, more diverse opportunity set. Artificial intelligence is a big part of this story. While its long-term potential across infrastructure and applications remains notable, we’re seeing clearer differentiation between winners and losers, and not just within technology. This dispersion is helping to create a stronger environment for active managers. The BGF US Flexible Equity Fund is built for this kind of market. The team look to capture structural themes and dispersion among megacaps and AI, while actively seeking differentiated opportunities beyond the most well-known names. At the core of the strategy is an earnings-first mindset, where we have a differentiated view versus the market. That insight is supported by the depth of BlackRock’s US Fundamental Equities platform, combining fundamental insight with systematic tools to build a portfolio that seeks to deliver. In a world that continues to change, we believe US remains a pivotal part of long-term equity allocations, where thoughtful active exposure can make a meaningful difference over time. Find out more about US equities at BlackRock.com

What’s driving the resilience of US equities?

Listen to Lauren Rowe, Product Strategist, as she explains how broadening market leadership, AI-driven dispersion and an earnings-first approach are shaping a more compelling environment for active management.

BGF US Flexible Equity Fund

While US equities dominate global benchmarks, EMEA portfolios remain relatively underweight. Combined with resilient economic growth and robust earnings, this creates a compelling opportunity to increase exposure and capture money in motion.

Although index concentration remains elevated, market breadth is widening beyond mega‑caps, reinforcing the case for active management. Strategies such as BGF US Flexible Equity offer diversified, earnings‑led exposure with disciplined mega‑cap risk controls, aligning closely with evolving client priorities.

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BGF US Flexible Equity Fund

Find out more about our BGF US Flexible Equity Fund, access the latest factsheet, holdings and performance information.

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The Bid podcast interview

Listen to our podcast interview with BGF US Flexible Equity Fund Portfolio Manager, Ibrahim Kanan.

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Frequently asked questions

Active investing involves portfolio managers selecting stocks based on fundamental research rather than tracking an index. The aim is to outperform the market or manage risk more effectively across different market conditions.

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