Wells Fargo has introduced a new all-cap US equity fund led by veteran manager Richard Weiss and his team of US equity investment experts.

Wells Fargo Asset Management has launched a Luxembourg-domiciled US equity fund.

The US Select Equity Fund will adopt an all-cap strategy, investing in between 30 to 40 stocks, and will be run by Chicago-based industry veteran Richard Weiss.

The fund will employ Weiss's private market value basis and compare results with the company's public market capitalisation to identify undervalued stocks with capital growth potential.

The PMV approach looks at the price an acquirer would pay for an entire company. It determines this by analysing a company's cash flows, asset valuations, competitive standing and industry-specific factors. Weiss and his team will also assess the company's management, financial health and growth potential.

Wells Fargo says share prices usually trade in a range of 50 to 80 per cent of PMV.

“We are pleased to offer US Select Equity to our growing international client base and to diversify our product line-up by adding a fund with substantial exposure to US securities across the market capitalisation spectrum,” said managing director, international business development at Wells Fargo Asset Management, Ludger Peters, in a statement.

The fund will be available in retail and institutional share classes at total expense ratios of 1.95 per cent and 1.25 per cent respectively. It will be compared with a benchmark combination of the Russell 2000 and the S&P 500 indices.