Morningstar has recently awarded a 5-star rating to the Strategic US Momentum & Value Fund, recognising its performance record as part of the top tier of global, long-only mutual funds.
The rating is a quantitative assessment of a fund’s past performance, both return and risk, as measured from one to five, with an emphasis on measuring portfolio manager skill.
Performance has been positive as a result of the disciplined bottom-up investment process adopted by the portfolio management team, with a focus on businesses with stellar track records of persistent growth, recurring nature of earnings, steered by strong management teams, trading at compelling valuations. Through this careful stock selection process, the Fund invests in a group of companies that are undemanding in valuation but decidedly superior in their historical growth track record and their future prospects. The team’s fundamental belief is that secular winners can become tremendous investments if bought at regular-company valuations.
The result of this bottom-up investment process leads to a natural bias towards the information technology, consumer discretionary, healthcare and industrial sectors, with the team running a concentrated portfolio of 25-40 names. The team has nimbly moved among these core sectors over time, primarily as a function of the opportunity set. The Fund’s portfolio positioning and exposure to high-quality companies tend to reduce the impact of market volatility. While the current return of volatility and uncertainty has unnerved markets globally, the team remains enthusiastic regarding the current portfolio and believes that while there remains the possibility for further volatile times, fundamentals for the investee companies remain highly compelling and should eventually drive returns.
Since the strategy launch in December 2011, the Fund has outperformed both the Dow Jones and S&P 500 indices, with a cumulative return of 74.69% through to 31 July 2015 (see below).
Source: Eric Sturdza Investments
The Fund’s performance has been equally compelling when viewed against its Morningstar defined Peer group, as the below diagram highlights, with the Fund offering top quartile performance across all time periods:
Source: Morningstar Direct
Managed by Eric I. Sturdza, and supported by a team that includes Constantin Sturdza, David Haynal and Yannick Ergas, the Fund invests in US equities, with a large-cap bias and has the flexibility to utilise financial derivative instruments for downside protection. Although broad-based in its purview, the Fund is currently weighted towards information technology (30%), consumer discretionary (18%), health care (16%), and industrials (12%) sectors.
For more information, please contact:
Telephone: +44 1481 722 322
Disclaimer: The value of the Funds and the income which may be generated from them can go down as well as up and is not guaranteed; therefore investors must be able to bear the risk of a substantial impairment or loss of their entire investment. Individual performance of the Funds may vary and historical data is not an indication of future results. Please also refer to the general disclaimer on the website