Global Value Fund
The Sub-Fund’s objective is to achieve substantial capital appreciation through concentrated investments in the equity securities of listed companies with a market capitalization between USD 1 billion and USD 20 billion and which are located in the USA, European Union and Asia.
Through a comprehensive fundamental valuation analysis and using a "hands-on" and value-oriented method, the Sub-Fund will target undervalued companies that are likely to appreciate.
In its investment selection, the Sub-Fund will seek to determine a company’s underlying value by scrutinizing, among others, its cash flows and restructuring and earning potential.
The following are characteristic traits of companies which are potential investment prospects for the Sub-Fund:
- In an effort to (i) stay within the Sub-Fund’s area of competence and (ii) avoid risks associated with technological obsolescence, government interference, product liability, lack of transparency and political/currency risks, the targeted companies will not be high-technology, bio-tech, pharmaceutical/drug, insurance, brokerage, utilities, banks;
- The targeted companies are companies whose market capitalization is typically between USD 1 billion and USD 20 billion. To a limited extent, the Sub-Fund may also invest in companies with a market capitalisation above USD 20 billion;
- The targeted companies are companies which are misunderstood or "unloved" by the investment community due to inefficiencies such as, among others: a highly diversified business-mix, a spotty or poor earnings history, a recent financial or corporate reorganization, an absence of adequate research coverage, or a poor reputation of current or previous management;
- The targeted companies offer opportunities of highly attractive cash flow, earnings turnaround potential, or strong balance sheet and franchise values that may become recognized and appreciated by the investment community as a result of any one or a combination of: the passage of time, restructuring (i.e., divestitures, sin-offs or refinancing), management changes, shareholder activism, initiation of research coverage by a major Wall Street Firm or a takeover or management buy-out;
- As far as the Sub-Fund’s investment policy is contrarian in nature, the targeted companies are companies that have seen their share price decline to a level where the Sub-Fund believes that it has become a highly attractive investment opportunity with limited downside (based on fundamental valuation and historic trading patterns) and a substantial upside (based on fundamental analysis) within a twelve to eighteen months time frame.
The typical holding period is expected to be between twelve to twenty-four months per investment.
The fund does not use short sales, leverage or financial derivatives. However, as provided by the SICAV Prospectus, the Sub-Fund may use financial derivatives for the purpose of hedging currency and market risks.