Evaluating the Attraction of the Liberty All-Star® Growth Fund (ASG) in a Downturn: A Deep Dive into Its November 2025 Performance

The Liberty All-Star® Growth Fund (ASG) has long been a focal point for investors seeking exposure to growth-oriented equities, particularly in volatile markets. As of November 2025, the fund is trading at a significant 10.4% discount to its net asset value (NAV), a figure that has drawn attention amid broader market uncertainty. This discount, coupled with a robust sector allocation strategy emphasizing technology, industrials, and healthcare, positions ASG as a compelling case study for evaluating resilience and growth potential during economic downturns.

The NAV Discount: Opportunity or Caution?

ASG's current market price of $5.37 contrasts sharply with its NAV of $5.99, resulting in a 10.4% discount as of November 2025. This marks a notable widening from the fund's 52-week average discount of -7.53%, with the peak discount reaching -9.39% earlier in the year according to the fund's performance data. Such a gap between market price and NAV often signals investor skepticism, potentially driven by macroeconomic concerns or sector-specific risks. However, historical patterns suggest that discounts of this magnitude can present buying opportunities, particularly for funds with strong fundamentals and diversified portfolios.

The discount's persistence may also reflect the fund's structure as a closed-end fund, where supply and demand dynamics in the secondary market can decouple share prices from underlying asset values. For income-focused investors, ASG's recent distribution of $0.12 per share adds another layer of appeal, though the sustainability of such payouts depends on the fund's ability to generate consistent returns.

Sector Positioning: A Growth-Driven Portfolio

ASG's sector allocations as of June 30, 2025, underscore its focus on high-growth industries. Technology constitutes 29.71% of the portfolio, with heavyweights like NVIDIA Corp., Microsoft Corp., and Apple Inc. dominating holdings. These companies, known for their innovation and market leadership, are well-positioned to benefit from long-term trends such as artificial intelligence and cloud computing. The fund's exposure to industrials (19.60%) and healthcare (16.20%) further diversifies its growth profile, with sectors that historically demonstrate resilience during economic transitions.

The fund's allocation to "sensitive" (super sector) stocks at 56.35% highlights its emphasis on cyclical and growth-oriented equities, which may underperform in a recession but offer outsized gains during recoveries according to sector analysis. This contrasts with its defensive (21.67%) and cyclical (20.12%) allocations, which provide a buffer against market volatility. The multi-manager approach-split among small-, mid-, and large-cap growth strategies-enhances diversification and reduces overexposure to any single market segment.

Strategic Resilience in a Downturn

ASG's portfolio is geographically concentrated in the United States (91.86% of equity holdings), a factor that aligns with its focus on domestic growth stocks but also exposes it to U.S.-centric risks according to fund analysis. However, its top holdings-such as NVIDIA and Amazon-have demonstrated global demand for their services, mitigating some of this risk. The fund's emphasis on technology and industrials also aligns with sectors that have historically outperformed during post-recessionary periods, as businesses invest in digital transformation and infrastructure.

The 6.87% year-to-date total return on a NAV basis as of November 2025 suggests that the fund's managers have navigated market turbulence effectively. This performance, combined with a diversified sector mix, positions ASG to capitalize on a potential market rebound. The challenge lies in balancing the current discount with the fund's long-term growth trajectory, as deep discounts can sometimes reflect underlying concerns about management or sector performance.

Conclusion: A Calculated Bet for Growth-Oriented Investors

The Liberty All-Star Growth Fund's 10.4% discount to NAV in November 2025 presents a nuanced opportunity for investors. While the discount may reflect short-term market pessimism, the fund's sector allocations-particularly in technology and industrials-offer a strong foundation for long-term growth. Its multi-manager structure and geographic focus on U.S. equities further enhance its resilience, though investors must weigh these advantages against macroeconomic risks. For those with a growth-oriented strategy and a tolerance for volatility, ASG's current valuation could represent an attractive entry point, provided the fund's managers continue to execute their all-cap growth mandate effectively.