“Nobody can predict interest rates, the future direction of the economy or the stock market. Dismiss all such forecasts and concentrate of what is actually happening to the companies in which you have invested.”.
"Know what you own and why you own it."
—
Peter Lynch
The Sparrowhawk Fund
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Description
Sparrowhawk Fund, a Long Only Global Opportunity Fund, was in 2009 converted into a Luxembourg regulated UCITS fund. The Fund uses the same investment approach as the FCM Opportunity Fund that was launched in 1980 and has grown from $US 900 000 to $US 356million, a rate of 16,72% compounded annually.
The Fund seek to achieve medium to long-term capital growth and could be classified as a 'Conviction Fund' as it has an investment philosophy best described as an absolute return approach. It seeks to maximize returns within a risk-controlled framework by investing in a concentrated portfolio of up to 25 global equities.
With a time horizon measured in years, not quarters, the Managers are focusing on fundamental research, patience and finding companies with a management focused on maximising shareholder value by growing its business over time.
Strategy
In order to achieve its investment objectives, the Fund invests in medium to large cap companies within selected sectors. Patience and quality are key ingredients of the management style, the long and successful track record (since 1980) shows the manager’s true conviction of this approach.
Only the best of breed companies within each sector are considered for inclusion in the portfolio. In order to select a company, the management team uses a three step analysis.
1. The management team obtains a global, long-term view of the world based on geopolitical and economical fundamentals. Subsequently, global long-term trends are identified.
2. The team selects the sectors that will benefit from these long-term movements.
3. After a serious analysis of each sector, the team identifies and picks the leading companies in each. The investment focuses on companies with a strong management culture, a sustainable business and a strong balance sheet rather than to speculate on stocks. The fund aims to remain fully invested and refrains from trying to time market movements. As long as the original long-term trend behind buying these companies stays intact they remain in the Fund.
The multi-theme Fund offers, professional and institutional investors the opportunity to participate in leading companies having a strong long-term upside potential in each sector.
