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US Equity Funds: Opportunities Beyond Big Tech

Investors’ Chronicle
Investors’ Chronicle•Apr 24, 2026

Why It Matters

With big‑tech’s slowdown, active US equity funds present a realistic path to outperform the S&P 500 and capture income, reshaping portfolio construction for both growth‑ and yield‑focused investors.

Key Takeaways

  • •Big‑tech slump opens space for active US equity funds.
  • •Persian Square Trust offers concentrated bets, but limited core exposure.
  • •JPMorgan American Trust blends growth/value, outperformed S&P 500 over five‑year.
  • •North American Income Trust targets “halo” assets, yields ~2.9% dividend.
  • •Small‑midcap trusts (BASC, JUSC) benefit from potential rate cuts.

Summary

The discussion centers on shifting US equity exposure away from the dominant "magnificent seven" tech giants toward active funds that can potentially beat the market now that big‑tech momentum has faded. Host Val and co‑host outline why passive index strategies, once the default, may no longer be the optimal choice for investors seeking higher returns. Key insights include a growing confidence that active managers can add value, illustrated by several trusts and open‑ended funds. Persian Square (PSH) offers a tightly‑held, high‑conviction portfolio; JPMorgan American (JAM) balances growth and value, mirroring the broader market while still outpacing the S&P 500 over five years. Income‑focused North American Income Trust (NIT) targets “halo” assets—utility‑type businesses resistant to AI disruption—delivering a 2.9% yield. Notable examples highlight the diversity of options: Bilakman’s ambition to emulate Warren Buffett through insurance‑backed capital, the inclusion of a few remaining magnificent‑seven names in Persian Square, and the small‑midcap trusts Brown Advisory US Smaller Companies (BASC) and JPMorgan US Smaller Companies (JUSC) positioned to profit from any future Fed rate cuts. The hosts also stress overlap considerations when layering multiple funds. For investors, the takeaway is clear: broader US exposure can be achieved through active, concentrated, or income‑oriented vehicles, each offering distinct risk‑return profiles. As big‑tech wanes, these alternatives may provide both outperformance potential and defensive income streams, especially if monetary policy eases.

Original Description

US equities have been dominated by big tech — but that may be changing.
With the Magnificent Seven no longer driving the market in the same way, investors are starting to look beyond the index for opportunities. That shift could make it easier for active managers to outperform after years of passive dominance.
In this video, Val Cipriani joins Dan Jones to explore where to look in US equity funds today — from concentrated strategies like Pershing Square to more balanced options and income-focused approaches. We also look at opportunities in smaller and mid-cap stocks, and what could drive returns in the next phase of the US market.
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