Offshore contrarian fund for Mundy
From Products Dec 12 2011 BY: Will Jackson
, Contributing editor
, International Adviser
Investec Asset Management has launched a Luxembourg-domiciled global equity fund for its contrarian team, headed by Alastair Mundy.
Investec GSF Global Contrarian Equity, which mirrors the £45m UK-domiciled Investec Global Special Situations Fund, is co-run by Mundy and Mark Wynne-Jones.
According to Investec, Mundy and Wynne-Jones make decisions designed to “oppose the herd instinct that drives market movements”, thereby minimising volatility and correlation.
Their bottom-up investment process avoids vulnerability to long-term macro-trends or themes, and instead seeks to identify underperforming stocks with favourable risk/reward ratios.
The UK-domiciled fund has performed relatively well since its launch in December 2007, FE Analytics data shows. The portfolio returned about 20% over the past four years in sterling terms, compared with an average rise of 1% in its Investment Management Association peer group.
On 31 Oct, the fund was overweight consumer discretionary stocks by seven percentage points, compared with the MSCI AC World Index, and underweight financials by 12 percentage points. Geographically, it was overweight Japan and underweight the US.
GSF Global Contrarian Equity, which was launched on 1 Dec, has a minimum investment limit of $3,000 and an annual management charge of 1.5%.