Thornbridge Global Opportunities Fund
The Thornbridge Global Opportunities Fund will invest in a diverse portfolio of primarily large and mid-sized leading global companies across a range of industry sectors and geographies.
The investment objective is to seek capital and income growth over a medium to long-term time horizon. The investment proposition is simple; investments in financially sound, well-run companies at attractive valuations should produce superior returns to the broader equity market. The manager uses a disciplined, bottom-up, research-driven stock picking methodology applied to companies that demonstrate some or all the following characteristics:
- An above-average return on assets
- A history of generating free cash flow
- A strong balance sheet
- Forecast to grow earnings over the medium to long term
- Attractive valuation suggesting appreciation potential
The manger’s strategy of deep analysis and individual stock-selection means that the portfolio will typically hold approximately 45-50 equities at any point in time. This relatively concentrated approach means that the position size of the average holding will be greater than that of a broadly diversified portfolio.
Unconstrained global fund with an emphasis on individual stock selection.
Sean was appointed as the portfolio manager of the MI Thornbridge Global Opportunities Fund in September 2019.
Sean has over twenty years of experience within the investment industry, working previously as an equity analyst at Old Mutual Asset Management and Orbis Investments (UK) and as a portfolio manager at Decillion Fund Management. In 2008, he established Ranmore Fund Management, which has been the investment manager to the Ranmore Global Equity Fund Plc for almost 11 years. He graduated from the University of Cape Town before completing accountancy articles at Deloitte. Sean is a CFA® Charterholder.
The manager screens approximately 1,700 companies seeking to invest, in a diverse portfolio of: profitable, growing companies with strong balance sheets that are generating free cash flow. This will only be done at valuations which offer both significant upside potential, but also a margin of safety in the event of any downside. As the old adage goes, “well bought is half sold”: if you buy at a great price, you’re halfway to having sold it.
Over recent years, markets have seen the outperformance of so-called “momentum” or “growth” stocks. Often these companies’ share price growth has been driven by attractive narratives around themes such as disruptive technologies, and accompanied by investors’ willingness to tolerate both an absence of earnings and the burning of cash for the idea of “jam tomorrow” – “once market dominance is secured, the earnings trajectory will be spectacular..”. Every investor loves an exciting investment story, but the manager’s approach is: why take the risk? If the forecast growth in earnings doesn’t materialise for whatever reason (competition, regulation, etc), investors will clamour for the exit leaving investors suffering a permanent loss of capital.
In contrast, the manager prefers to build positions in companies whose earnings prospects are promising at a valuation that is typically, trading on an earnings multiple which is below that of the wider market. Such stocks offer attractive upside potential if their share prices re-rate but providing a margin of safety in the event of the future not playing out as expected.