This was part of a Nomura investor day with an introduction to a range of funds and strategies. This is a global high conviction fund with 20 holdings. The performance seems strong but compared to other strategies it seems to have lagged. Looking at the high-level data it would appear the fund does not fully protect on the downside, nor does it capture the upside. The batting average also appears weak. The strategy itself is a pure stock picking fund looking to buy quality at a discounted value.
This is effectively a best ideas fund, and there seems to be a number of these strategies to compete against. To provide a flavour of how the managers approach the investment they discussed three main movements this year….read more