The fund is essentially a high conviction stock pickers fund looking to identify mispriced investment opportunities.
They believe the key points of difference for the strategy are:
1. The resources they have – over 30 people dedicated to emerging markets. They believe the only good data that is now available is in-house data. All analysts have at least one recommendation within the fund and therefore the resource and collaborative approach makes it stand out
2. Research is over at least five years, and this reflects the fact that they tend to be long term holders with 5 plus years
3. Capture macro risks – this is about the stocks. They know macro risks have an impact over the short to medium, but every country and company has a different risk profile, and this is factored into the work they do
4. ESG – this is fully embedded into the process. As stock pickers they want to select the best companies and understanding the environmental footprint, employee turnover, management etc is an important part of that process
5. Portfolio construction and risk management – they look at the different factors which influence a share price, like currency and price of oil