Munro’s investment philosophy focuses on the simple task of identifying and investing in companies that have the potential to grow at a faster rate and on a more sustainable basis than the peer group.
In managing the Fund, Munro’s investment approach is an active, benchmark unaware, long/short global equity strategy. There are no regional, market capitalisation or sector constraints, and no allocation limits in respect of the location, class or currency of assets.
Munro is focused on growth; it identifies sustainable growth trends that are under-appreciated, not well understood and mispriced by the market – and the stocks that are winners and losers as a result. As experts in the space, Munro leverages its global access to identify key ‘Areas of Interest’ for further investigation.
Ideas are generated from a combination of top-down thematic and bottom-up views, and the research process is a vital ingredient. The team has constant interaction with corporate management, independent consultants, industry networks, sell-side research and the private equity community, all which contribute to the identification of new Areas of Interest and new investment opportunities.
Qualitative and quantitative tests combine to build a high conviction portfolio of 30-50 investments. Short selling is undertaken as part of the investment strategy to benefit from falling securities prices and is not used as a portfolio hedging tool. Short positions are subject to a more prudent risk-taking approach with smaller position sizing and more frequent profit taking.
The Fund at a glance
- Active, benchmark unaware absolute return global equity strategy
- Deploys a long/short equity strategy with a long bias
- Focus on growth investments
- Access to an experienced investment team
- Strong emphasis on risk management and capital preservation
- Complements cash, bonds and other global equity strategies that primarily focus on value or core investment styles