Investment Objective
An Equity long short fund focused on developed European small-caps, including the UK. A variable net and gross exposure but typically 'net long' given the opportunity set. We seek to exploit unrecognized under and over value in European small-cap equities. An investment fund, not a trading fund (although the portfolio is not static), with an average holding period of 12-24 months for both longs and shorts.
Latest Meeting Note
Meeting 05 Jul 2024
The Landseer European Smaller Companies Equity Long/Short Fund employs a fundamental, bottom-up research approach across European small-cap equities and is managed by Jamie Carter (ex SWMC). The investment process is centred on three pil...
The Landseer European Smaller Companies Equity Long/Short Fund employs a fundamental, bottom-up research approach across European small-cap equities and is managed by Jamie Carter (ex SWMC). The investment process is centred on three pillars: management, cash flow, and catalysts. The PM emphasises the importance of meeting with management, with the overall European equities team undertaking approximately 800 meetings annually, to understand their vision, strategy, and operational drivers. This intensive due diligence also includes visits to customers, suppliers, and competitors to ensure a comprehensive understanding of each business. The cash flow analysis focuses on free cash flow yields, return on invested capital, and cash conversion rates, with the team looking to identify companies with strong, sustainable cash flows that can be reinvested at high returns. Additionally, the team looks for catalysts—both hard, like earnings reports and management changes, and soft, such as shifts in investor sentiment—that could unlock value in their investments. The fund takes a dynamic and risk-managed approach to portfolio construction, with positions sized according to factors like volatility, liquidity, market cap, beta, and volume, with the portfolio diversified but concentrated in high-conviction ideas. Risk management ensure alignment of key risk contributions with the highest conviction ideas, as well as incorporating scenario analysis and monitoring of macro, sector, and factor exposures.
Performance
JAN | FEB | MAR | APR | MAY | JUN | JUL | AUG | SEP | OCT | NOV | DEC | YTD | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2023 | 0.5 | 0.6 | 0.9 | 1.0 | 1.0 | 0.8 | 0.7 | 0.7 | 0.0 | 0.5 | 0.9 | 0.8 | 0.9 | |
2022 | 0.3 | 0.8 | 0.6 | 0.7 | 0.0 | 0.8 | 0.1 | 1.0 | 0.1 | 0.6 | 0.5 | 0.5 | 0.6 |