MontLake Invenomic US Equity Long/Short UCITS Fund

The MontLake Invenomic US Equity Long/Short UCITS fund launched on the MontLake platform in September 2021 with $35m of seed capital and has scaled rapidly. The fund is managed by Ali Motamed (ex Boston Partners), founder of Invenomic Capital Management. The strategy is fundamentally driven US equity long short with a market-cap agnostic approach. The fund is built around three core principles; investing in fundamentally sound companies, disciplined short selling, and diversification, which is used as an essential tool in risk management. On the long side, the approach is value biased with a focus on sustainable free cash flow generation. Ali looks for businesses that have enduring barriers to entry, long consistent histories, and companies that demonstrate a sensible and defined capital deployment strategy. On the short side the portfolio is stock-specific and is focused on companies that are expected to generate real negative returns, centred around three main types; stocks have negative free cash flow, businesses where with poor pricing powers, and companies where valuations are inflated due to unsustainable events.