The global real return strategy is a global long-short strategy focused on protecting and growing the real value of clients’ capital over our investment horizon of 3-5 years.
The strategy utilises themes to help identify industries and companies that are well positioned to benefit from medium term growth regardless of where they are located. These investment candidates are then subject to rigorous bottom up analysis culminating in detailed absolute valuations.
The portfolio is then constructed by investing in between 25 and 40 of these companies, with investments in an individual holding only being made when we expect an annualised total return of at least 15%.
This process leads us to expect an annualised return for the fund of CPI +6% over our investment horizon while allowing a significant margin of safety.
- Target annualised returns of CPI +6% over the medium term (3-5 years)
- Focused on protecting and growing the real value of clients’ capital achieved through focused investment in equities with active hedging to reduce equity market exposure as appropriate
- Combine the top-down with the bottom-up: the use of context and themes with proprietary research and valuation
- Global unconstrained approach coupled with high conviction (25-40 stocks)
- Hedging through the use of index options and futures as appropriate.