Erik Turenchalk, CFA
25 Years at AB|29 Years of Experience
Erik Turenchalk was appointed Portfolio Manager for US Small and Mid Cap Value Equities in January 2020. From 2012 to 2019, he was a senior research analyst on the Small and Mid Cap Value team, responsible for covering industrial companies. Turenchalk was also the global industrials sector leader from 2017 to 2019. He joined the firm in 1999, and was promoted to research analyst in 2005. From 1999 to 2007, Turenchalk worked on the Advanced Value hedge-fund team, primarily researching short-position ideas with an emphasis on the consumer-cyclicals sector. In 2007, he relocated to London to support the firm’s international hedge-fund offerings. In 2010, Turenchalk returned to New York to oversee the research of short positions for the domestic hedge-fund portfolios. In 2012, he joined the Small and Mid Cap Value team. Prior to joining the firm, Turenchalk was a business analyst at Pratt & Whitney, a United Technologies company. He holds a BS in business administration with a concentration in finance from the University of Connecticut, and is a CFA charterholder. Location: New York
Published Work
Today’s value stocks offer a magnificent mix of quality, forward-looking profitable firms.
How can investors identify companies that can adapt their processes to compete in a less globalized world?
US small-cap value stocks have enjoyed considerable success since value stocks began to outperform growth in October 2020. Even after the recent rally, we believe several forces will continue to drive the recovery in the months, and possibly years, ahead.
Small-cap US stocks rebounded sharply in the fourth quarter. Yet the recovery may still be in its early stages-particularly for smaller-cap value stocks-as pandemic risks recede and earnings drivers kick in during 2021.
Smaller stocks offer diversification benefits and investment opportunities that can't be found in their larger brethren. But because large-cap stocks have been so popular for the last 10 years, many investors have missed out on the compelling stories and advantages smaller companies can provide. Our research aims to shine some light on the universe of smaller stocks by examining their perceived risks, performance drivers and return potential-particularly amid a recovery from the COVID-19 pandemic and recession. The time is right for investors to consider smaller investments that have the potential to sparkle.
As concerns about inflation spread, it's time to gauge how different types of stocks will respond. Smaller companies in niche markets may be better positioned to cope with rising prices-especially in consolidating industries.