- A proven strategy adhering to core valuation and risk management disciplines
- Differentiated approach to long only investing
- Targets long-term capital growth through investment in predominantly UK equities
The philosophy of the strategy has been refined by Henry Dixon and his team over 14 years in the industry. In seeking out companies with strong cash and asset characteristics – but which are unloved by the market – the managers aim to construct a portfolio that is materially better value than the broader market.
The managers target companies that demonstrate the following:
- An estimated replacement cost that exceeds market value
- Cash generation with a strong balance sheet
- Priced below their estimated intrinsic value as defined by earnings
The team believes that conventional equity valuation principles often place too much emphasis on forecasting earnings into the future. Instead, by focusing on the current shape of the balance sheet the team targets significant uplift in valuation metrics versus the market.
Risk is mitigated through a thorough analysis of a company’s balance sheet. The managers aim to avoid value traps that appear cheap on P/E and yield by constructing a portfolio with a stronger balance sheet, superior cash flow, and more assets than the market.
|Reference Index||FTSE All-Share TR Index|
Performance by calendar years
Past performance is not indicative of future results. Returns may increase or decrease as a result of currency fluctuations.
Please note that the performance data is not intended to represent actual past or simulated past performance of an investment product. The data is calculated in GBP and is based on a representative investment product or products that follow the strategy. An example fee load of 0.75% has been applied. The FTSE All-Share TR Index is selected by the Strategy Manager/s for performance illustration and comparison purposes only. It is not a formal benchmark and does not form part of the strategy’s objectives.
Despite near record relative value, investors are underweight UK stocks. Consumers, government and business may prove them wrong.
Why we believe the UK may well outperform other developed markets over the next 12 months.
Headlines portray nothing but doom and gloom for the UK consumer (and thus the economy). However, scratch beneath the surface, and there are strong reasons for optimism.
Man offers a comprehensive suite of investment solutions and formats that can be tailored and optimised to meet specific client needs. Our investment solutions offer optionality including: liquidity, control, investment restrictions, investor customisations and transparency.
Access to investment products and mandate solutions are subject applicable laws and regulations including selling restrictions and licensing requirements. Investment solutions listed above may not be compatible for all investment strategies and may be subject to minimum subscription requirements. Regional Funds: In additions to UCITS and AIFs registered across the EEA, a number of investment strategies are available in vehicles registered in Chile, Netherlands, Hong Kong, Japan, Singapore, South Korea and Switzerland.
One should carefully consider the risks associated with investing, whether the strategy suits your investment requirements and whether you have sufficient resources to bear any losses which may result from an investment:
Investment Objective Risk - There is no guarantee that the Strategy will achieve its investment objective.
Market Risk - The Strategy is subject to normal market fluctuations and the risks associated with investing in international securities markets and therefore the value of your investment and the income from it may rise as well as fall and you may not get back the amount originally invested.
Counterparty Risk - The Strategy will be exposed to credit risk on counterparties with which it trades in relation to on-exchange traded instruments such as futures and options and where applicable, ‘over-the- counter’("OTC","non-exchange") transactions. OTC instruments may also be less liquid and are not afforded the same protections that may apply to participants trading instruments on an organised exchange.
Currency Risk - The value of investments designated in another currency may rise and fall due to exchange rate fluctuations. Adverse movements in currency exchange rates may result in a decrease in return and a loss of capital. It may not be possible or practicable to successfully hedge against the currency risk exposure in all circumstances.
Liquidity Risk - The Strategy may make investments or hold trading positions in markets that are volatile and which may become illiquid. Timely and cost efficient sale of trading positions can be impaired by decreased trading volume and/or increased price volatility..
Financial Derivatives - The Strategy may invest in financial derivative instruments ("FDI") (instruments whose prices are dependent on one or more underlying asset) typically for hedging purposes. The use of FDI involves additional risks such as high sensitivity to price movements of the asset on which it is based. The use of FDI may multiply the gains or losses.
Single Region/Country Risk - The Strategy is a specialist country-specific Strategy or focuses on a particular geographic region, the investment carries greater risk than a more internationally diversified portfolio.