Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected” George Soros
Money is hard to earn and given the range of choices easy to spend. However we all know that putting some money aside for our retirement years, a particular event or objective or just as a ‘sleep well at night’ nest egg makes considerable sense. Given this – and the expanse of alternative providers out there – why invest in our Global Dynamic Fund?
The first reason is simplicity. Our slogan – and underlying investment philosophy – is to find ‘the best stocks, in the best sectors, in the best markets’. We are not slaves to the composition of stock market indices but choose and mix investments we believe collectively will make money for our investors. At the core of our approach is to grow our investors’ hard earned capital over reasonable time periods.
To achieve such an aim our investment selection approach is centred on searching for opportunities in the stock market. The simple underlying concept behind this is that with far too much information sloshing around the world, stock market participants buying and selling shares can be easily swayed by those most human emotions of fear and greed especially over a shorter-term period of days and weeks. Typically however over longer time periods share prices reflect underlying realities about corporate profitability, cash flow generative capability and growth potential. When we find opportunities in the global stock market where perception and reality appear to be sharply divergent we consider making an investment in the belief that reality will eventually triumph.
It is our belief at the moment that the current opportunity set for this style of investment is very high given the not only the exponential growth of noise and chatter in the global investment markets but also the complicating factors of politics, trade and Central Bank policies deepen the risk of fear and greed impacting individual share prices.
As these opportunities do not turn profitable in some fixed period of time we always hold a diversified range of investments (typically between 30 and 40) across different sectors and stock markets. And to act extra prudence to our selections we will only be looking at larger companies whose shares have liquidity to help us build up or build out of a position.
We are confident with our approach based on previous corporate initiatives but we would be telling a mistruth if we said that every individual decision we made worked out effortlessly correctly. To stop individual investments that do not completely fulfil our hopes overly impacting our overall portfolio we have a simple risk control measure that forces us to sell an individual position before it has too large an impact.
And finally we strongly believe in communication. You should not only expect to receive a regular flow of communications about your investment but additionally feel able to ask us anything. In short we want you to feel that this is a partnership for the longer-term where we help you achieve some of your medium-term financial aims.
Latest News & Views
I hope, like me, regular readers have enjoyed Chief Investment Officer Chris Bailey’s stimulating weekly bulletins. Sharing with investors our latest reading of global markets is a key feature of our Fund.
As the expression goes, travel broadens the mind. This last weekend found me in Beijing, the capital of China, with a modest formal agenda but an innate curiosity to find out a little more what makes the country tick.