Global

The Global Equity strategy aims to outperform its benchmark, MSCI ACWI, by 3% per annum over a three-year rolling period. It targets high returns and long-term capital growth by investing in a portfolio of primarily equity and equity-related securities. 

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Global Equity

We start with the premise that you cannot outperform the benchmark by replicating it. We also take the view that portfolio performance is only as strong as your weakest idea, so we carry no passengers and run a high conviction, concentrated portfolio with high active share.

To us, having high conviction goes hand in hand with holding high-quality companies for a long period of time. Given that one can never know with certainty what the future holds, we find that it is difficult to ever truly back an individual position if your confidence is likely to dissipate the moment the economy turns. Thus, we look to hold companies with strong balance sheets, which are capable of generating double-digit returns on capital at all points in the economic cycle (including during recessions). In this way, when times are tough, our investments should be able to keep adding economic value, perhaps using superior balance sheets to buy up competition, or at the very least, investing counter cyclically to take market share. When times are good, they should be able to reinvest their surplus cash flow at a higher rate of return and thus compound earnings at a faster rate than the market.

Finally, while we are very clear about the type of companies that we want to hold in our portfolio, we also believe that it is crucially important to avoid overpaying for these businesses. To this end, we think it is essential to employ a rigorous valuation framework to ensure that we are buying not just the right asset, but at the right price.

In short, we believe that investing in a core portfolio of high-quality companies with attractive valuations is the key to generating strong and consistent investment performance.

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