The Cambridge team focuses on identifying companies with a sound, sustainable business and not overpaying for this value creation.
The Fund is managed according to the Cambridge philosophy of a fundamental approach, a focus on value creating businesses, and an ownership mentality.
Each pillar of this investment philosophy was conceived to help compound client wealth over the long term. It dictates how the team operates, what they stand for and what differentiates Cambridge from its competition.
For the Cambridge Global Smaller Companies Fund, emphasis is also placed on identifying companies that trade at a discount to intrinsic value.
Cambridge believes stock markets are inefficient and opportunities arise for patient, well-informed investors to buy an ownership stake in a company below intrinsic value. The Cambridge team strives to take advantage of these inefficiencies through time horizon arbitrage, identifying strong capital allocators and recognising businesses at inflexion points.
This is particularly evident in smaller companies that tend to be underfollowed by the investment community. Through Cambridge’s risk/reward methodology that helps determine the value of a business across a range of potential outcomes, the investment team is able to build high conviction and act quickly when opportunities arise.
The Fund at a glance
- Actively managed with bottom-up, fundamental investment process
- A focus on identifying companies with sound, sustainable business and not overpaying for this value creation
- Sector and country weights are a by-product of stock selection decisions and are not influenced by the benchmark; however, consideration is given to country and sector exposures to ensure adequate diversification
- The Fund comprises a high conviction portfolio of 30-50 companies and aims to deliver strong risk-adjusted returns
- The investment team co-invests in the Fund, creating a strong alignment of interests between the team and the Fund’s investors.