Montlake Tosca UCITS

Tosca UCITS is global long/short equity fund specializing in financials, business services and property sectors. The portfolio is managed by Johnny de la Hey who has been running the Tosca strategy since 2008, with the support of 5 analysts (all sector specialists). Starting from a global universe of c. 1000 stocks (inc. EM), the team uses macro analysis, valuations screens as well as inputs from its extensive network (company managements, regulators, consultants, etc) to identify the most compelling ideas (c. 150 stocks), with deep dive, fundamental analysis the key building block around which the portfolio is constructed. The final portfolio includes 35-40 long positions (max position size is generally 6% at cost) and 50-70 shorts, the majority of which are in single names. The team can use baskets or indices for hedging purposes. The fund’s net exposure is typically limited at +50% vs. 175% gross. At the sub-sector level, the portfolio is generally invested across secular growth/compounders names (exchanges, payments, digital platforms, etc) and more value plays (banks, asset management) with overall exposures dynamically adjusted to reflect the prevailing opportunity set. At the time of writing, the PM has aggressively shifted the portfolio towards ‘Value’ names (Banks are the largest exposure at 62% of gross vs. 13% in late 2020) which should benefit from the ongoing re-opening and earnings upgrades cycle.