Clarington Funds Inc. is introducing two new equity funds, the Clarington Canadian Growth Fund, managed by KBSH Capital Management Inc. of Toronto, and Clarington U.S. Large Cap Value Class, managed by Salomon Brothers Asset Management of New York.

Clarington U.S. Large Cap Value Class will model the existing Salomon Brothers Investors Value Fund, available only to U.S. investors. Lead manager Jack Cunningham likes to call his style “Value Light.” He will avoid the deep value stocks such as highly cyclical companies, and concentrate on attractive companies that are temporarily overlooked or out of favour. This fund is part of Clarington Sector Fund Inc. that allows individuals to switch among funds in the group without triggering a taxable capital gain.

“We always look for a catalyst that we expect will get the company’s stock price moving again, and we avoid stocks that are cheap for a good reason, and likely to stay cheap,” Cunningham says. “The ultimate value stock is one that turns into a growth stock.”

Clarington Canadian Growth Fund will invest in companies with a compelling growth strategy, sustainable competitive advantage, superior management, solid financial position and attractive valuation. “We identify companies that display financial strength and superior growth prospects, regardless of economic and market cycles,” says David Knight, executive chairman and co-founder of KBSH.