The Fund’s investment objective is to generate an overall investment return through long-term capital growth as well as dividend and other income. This is achieved via a high conviction portfolio of long and short equity positions.
The Fund’s strategy for security selection is to augment traditional fundamental and macroeconomic analysis with contemporary quantitative analysis in order to deliver a portfolio of long and short equity investment ideas with a high level of idiosyncratic (stock selection) risk.
MSCI World (GBP)
Latest Meeting Note
Meeting 06 Dec 2022
The investment strategy focuses around transformation investing and corporate change. The team use 5 tests for transformation, looking at; management, business economics, balance sheet, ESG, valuation, where all 5 must be met to qualify ... Read more
The investment strategy focuses around transformation investing and corporate change. The team use 5 tests for transformation, looking at; management, business economics, balance sheet, ESG, valuation, where all 5 must be met to qualify for the investment universe. 80% of the investment analysis is traditional fundamental research. Here the team undertake detailed modelling to understand balance sheet strength, cash flow generation and profitability. This is combined with corporate strategy analysis to identify significant future change in the business. On top of this, the team utilises a contemporary approach to quantitative analysis developed by Chris during his time at Cambridge University. Iguana 'x-rays' a stock to identify key factors influencing the share price, similar to portfolio factor analysis but applied to a single stock. This augments the fundamental analysis and helps to ensure the teams efforts are directed towards stocks where idiosyncratic risk is greatest. The team has overall 400 stock level models with ESG integrated into each one, with a core focus on CO2 emissions as well as board diversity, with the fund Article 8 and the firm committing to donate 10% of corporate profits to charity. The fund typically has a gross between 140-160% and a net of 0-20%, and is focused on developed markets with exposure roughly split across UK, Europe and the US. The fund targets returns of 8-12% pa with lower volatility than wider market indices.