Liberty All-Star Growth Fund, Inc. (ASG)

Liberty All-Star Growth Fund, Inc. (ASG) Financial Services Profile

Liberty All-Star Growth Fund, Inc. (ASG) operates as a closed-ended equity mutual fund, specializing in diversified U.S. growth stocks across all market capitalizations. Utilizing a multi-manager approach and fundamental analysis, the fund benchmarks its performance against key indices like the NASDAQ Composite, offering investors exposure to the dynamic growth segment of the American equity market.

What Is the Investment Thesis for ASG?

Liberty All-Star Growth Fund, Inc. (ASG) presents an investment vehicle focused on U.S. growth equities, managed through a diversified multi-advisor structure. With a market capitalization of $350.45M and a P/E ratio of 22.66, the fund demonstrates a commitment to growth-oriented investments. Its robust profit margin of 179.8% and gross margin of 77.1% reflect effective portfolio management and favorable market conditions for its holdings. The fund's beta of 1.17 indicates a slightly higher volatility compared to the broader market, consistent with its growth stock focus. A notable aspect is its substantial dividend yield of 8.87%, which can appeal to income-focused investors seeking exposure to growth assets. The fund's strategic reliance on fundamental analysis and bottom-up stock picking across diverse sectors and market caps positions it to capitalize on long-term trends in the U.S. equity market, particularly within innovative and expanding industries. The multi-manager framework aims to enhance stock selection and risk management, driving potential value for shareholders.

Based on FMP financials and quantitative analysis

ASG Key Highlights

• Market Capitalization of $350.45M, indicating its scale within the closed-end fund landscape.
• P/E Ratio of 22.66, reflecting the valuation of its underlying growth-oriented portfolio holdings.
• Profit Margin of 179.8%, showcasing strong profitability derived from its investment activities and portfolio performance.
• Gross Margin of 77.1%, demonstrating the efficiency of its asset management in generating returns before operating expenses.
• Dividend Yield of 8.87%, offering a significant income component to investors in addition to potential capital appreciation.

Who Are ASG's Competitors?

ASG is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are ASG's Key Strengths?

• Long operational history since 1986, indicating stability and experience in various market cycles.
• Multi-manager approach provides diverse investment expertise and potentially broader market coverage.
• Strong financial metrics including a 179.8% profit margin and 8.87% dividend yield.
• Clear investment mandate focused on U.S. growth stocks across all market capitalizations.

What Are ASG's Weaknesses?

• Closed-ended fund structure means share price can trade at a premium or discount to NAV, impacting investor returns.
• Beta of 1.17 suggests higher volatility compared to the broader market, which may not suit all investors.
• Reliance on the performance of U.S. growth equities, making it susceptible to sector-specific downturns.
• Fund management fees (though not specified in data) inherent to actively managed funds can impact net returns.

What Could Drive ASG Stock Higher?

• Strong quarterly performance reports from its underlying portfolio companies, indicating robust growth trends.
• Favorable economic data releases in the U.S. that signal sustained growth and investor confidence in growth equities.
• Continued high demand for diversified U.S. growth exposure among institutional and retail investors.
• Sustained attractive dividend distributions, reinforcing its appeal to income-focused investors.

What Are the Key Risks for ASG?

• Significant downturns or prolonged periods of underperformance in the U.S. growth equity market, impacting the fund's NAV.
• Increased interest rates, which can negatively affect the valuation of growth stocks due to discounted future earnings.
• The fund's share price trading at a discount to its Net Asset Value (NAV), which can occur in closed-end funds.
• Higher market volatility (Beta of 1.17) compared to broader market indices, leading to larger price fluctuations.

What Are the Growth Opportunities for ASG?

• Sustained Performance of US Growth Equities: The fund's dedicated focus on U.S. growth stocks across all market capitalizations positions it to benefit significantly from periods of strong economic expansion and technological innovation. As the U.S. economy continues to evolve, sectors like technology, healthcare, and consumer discretionary often present high-growth opportunities. ASG's ability to identify and invest in leading growth companies through its fundamental, bottom-up approach could drive substantial capital appreciation within its portfolio, directly enhancing its net asset value and share price over time. This ongoing market trend provides a foundational growth driver for the fund.
• Increased Investor Demand for Diversified Growth Exposure: Many investors seek exposure to the growth segment of the U.S. equity market but may lack the resources or expertise for individual stock selection. ASG offers a professionally managed, diversified portfolio of growth stocks, making it a noteworthy option for those looking for broad market growth participation. The fund's established track record since 1986 and its multi-manager structure can instill confidence in investors, potentially leading to increased demand for its shares in the secondary market. This demand can help support its share price and overall market capitalization.
• Attractive Dividend Yield in a Growth-Focused Portfolio: With a significant dividend yield of 8.87%, ASG offers a compelling proposition for investors seeking both growth potential and regular income. In an environment where traditional income sources may offer lower yields, a growth fund that also provides a substantial dividend can attract a broader base of investors, including those focused on total return. This dual appeal can differentiate ASG from purely growth-oriented funds and potentially increase its investor base, contributing to its market stability and growth.
• Leveraging Expert Multi-Manager Approach for Alpha Generation: The co-management by specialized firms like Weatherbie Capital, Congress Asset Management, and Sustainable Growth Advisers provides ASG with a diverse pool of investment talent and strategies. This collaborative model can lead to more robust portfolio construction, enhanced risk management, and potentially superior stock selection compared to a single-manager approach. Each manager brings unique insights and expertise to different segments of the growth market, which can collectively contribute to outperformance and the generation of alpha, ultimately benefiting shareholders through stronger returns.
• Appeal of Active Management in Dynamic Markets: In today's rapidly changing market environment, a fund employing fundamental analysis and a bottom-up stock picking approach may be perceived as more capable of navigating complexities and identifying mispriced opportunities than passive index funds. ASG's commitment to in-house research and active management allows it to adapt to evolving market conditions, potentially capitalizing on emerging trends and avoiding underperforming sectors. This active strategy can be particularly appealing during periods of market volatility, positioning ASG as a potentially more resilient and value-adding investment option.

What Opportunities Does ASG Have?

• Continued strong performance in the U.S. growth equity market could drive NAV and share price appreciation.
• Increasing investor demand for income-generating assets could highlight its attractive dividend yield.
• Potential for outperformance through active, fundamental, bottom-up stock picking by its experienced managers.
• Expansion of its investor base through enhanced marketing or distribution channels for closed-end funds.

What Threats Does ASG Face?

• Significant downturns in the U.S. growth equity market could negatively impact portfolio value and share price.
• Increased competition from other growth-focused mutual funds, ETFs, and actively managed strategies.
• Changes in investor sentiment away from growth stocks or towards passive investing strategies.
• Regulatory changes impacting closed-end funds or the broader asset management industry.

What Are ASG's Competitive Advantages?

• Established track record since 1986, providing historical context and investor familiarity.
• Multi-manager expertise from ALPS Advisers, Weatherbie Capital, Congress Asset Management, and Sustainable Growth Advisers, offering diverse investment perspectives.
• Proprietary in-house research capabilities supporting fundamental, bottom-up stock selection.
• Diversified portfolio across sectors and market capitalizations, potentially reducing concentration risk.

What Does ASG Do?

Liberty All-Star Growth Fund, Inc. (ASG) is a closed-ended equity mutual fund established on March 14, 1986, initially known as Charles Allmon Trust, Inc. Domiciled in the United States, ASG operates under the management of ALPS Advisers, Inc., which oversees its overall strategy and operations. The fund benefits from a distinctive co-management structure, leveraging the expertise of Weatherbie Capital, LLC, Congress Asset Management Company, and Sustainable Growth Advisers, LP. This multi-manager approach aims to bring diverse perspectives and specialized insights to its investment decisions. ASG's core investment mandate is to invest in the public equity markets of the United States, with a specific focus on growth stocks. The fund's strategy is broad, encompassing companies across diversified sectors and all market capitalizations, from small-cap innovators to large-cap established growth leaders. It employs a rigorous fundamental analysis framework combined with a bottom-up stock picking approach, meaning investment decisions are primarily driven by the detailed evaluation of individual companies rather than top-down macroeconomic views. The objective is to identify companies with strong growth potential that align with the fund's investment criteria. To assess its performance, Liberty All-Star Growth Fund, Inc. benchmarks its portfolio against several widely recognized indices, including the NASDAQ Composite Index, the Russell 3000 Growth Index, and the S&P 500 Index. This allows investors to compare ASG's returns against broad market growth trends and specific growth-oriented benchmarks. The fund emphasizes in-house research to inform its investment selections, ensuring a proprietary and thorough due diligence process. As a closed-ended fund, ASG issues a fixed number of shares that trade on an exchange, providing liquidity to investors who wish to buy or sell shares without directly impacting the fund's underlying asset base.

What Products and Services Does ASG Offer?

• Manages a closed-ended equity mutual fund focused on U.S. public equity markets.
• Invests primarily in growth stocks of companies across all market capitalizations.
• Employs a fundamental analysis and bottom-up stock picking approach for portfolio construction.
• Co-managed by ALPS Advisers, Weatherbie Capital, LLC, Congress Asset Management Company, and Sustainable Growth Advisers, LP.
• Benchmarks its performance against the NASDAQ Composite Index, Russell 3000 Growth Index, and S&P 500 Index.
• Conducts in-house research to inform investment decisions.
• Seeks to invest in stocks of companies operating across diversified sectors within the United States.

How Does ASG Make Money?

• Generates returns for shareholders through capital appreciation of its underlying growth stock portfolio.
• Distributes income to shareholders via a significant dividend yield (8.87%) derived from portfolio earnings.
• Manages a fixed pool of assets within a closed-end fund structure, trading on public exchanges.
• Leverages a multi-manager approach to diversify investment expertise and enhance stock selection.

What Industry Does ASG Operate In?

The asset management industry, particularly within the closed-ended fund segment, is characterized by its focus on generating returns for investors through diversified portfolios. Liberty All-Star Growth Fund, Inc. operates within this competitive landscape, specializing in U.S. growth equities. The broader industry is influenced by market volatility, interest rate changes, and investor sentiment towards specific asset classes. ASG's multi-manager structure, involving ALPS Advisers, Weatherbie Capital, Congress Asset Management, and Sustainable Growth Advisers, positions it to leverage diverse expertise in a market that increasingly demands specialized investment strategies. The fund's emphasis on fundamental analysis and bottom-up stock picking aligns with a trend towards active management seeking to outperform passive indices, especially in growth sectors where company-specific factors can drive significant returns. Its benchmarking against the NASDAQ Composite, Russell 3000 Growth, and S&P 500 places it directly in competition with other growth-focused funds and ETFs.

Who Are ASG's Key Customers?

• Individual investors seeking exposure to U.S. growth equities.
• Institutional investors looking for diversified growth-oriented investment vehicles.
• Investors seeking both capital appreciation and a substantial dividend yield.
• Shareholders of the Liberty All-Star Growth Fund, Inc.

How Liberty All-Star Growth Fund, Inc. Is Valued

Liberty All-Star Growth Fund, Inc. carries a market capitalization of $350.45M, placing it in the small-cap category. Relative to its peer group, ASG's quantitative score of 49/100 is below the peer average of 70/100.

Liberty All-Star Growth Fund, Inc. Financial Trajectory

Liberty All-Star Growth Fund, Inc. (ASG) reported $7.3M in revenue for Q4 2025, reflecting 720.5% growth compared to the prior quarter. The company recorded net income of $10.9M, with diluted EPS of $0.17. Quarter-over-quarter revenue has been mixed, typical for a small-cap company operating in Financial Services. Across the four most recent quarters, ASG averaged $0.26 in diluted EPS.

ROE 4%Key Financial Metrics

Return on equity for Liberty All-Star Growth Fund, Inc. stands at 4.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 3.9%, showing how much profit it generates from its asset base. ASG trades at a trailing price-to-earnings ratio of 23.03, above the Financial Services sector average of ~18x. Its free cash flow yield is 0.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.08 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 4.3%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 5/9Financial Health

Liberty All-Star Growth Fund, Inc.'s Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 18.18 places it in the safe zone, indicating low near-term bankruptcy risk.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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