EUROPEAN LONG/SHORT STRATEGY

Launched in 2001, the Martin Currie European long-short strategy aims to capture the very best European long-term growth opportunities with managed volatility and downside protection. The highly experienced management team have successfully achieved these long-term objectives.

THE OPPORTUNITY

The European market offers a large and liquid opportunity set with multiple pricing inefficiencies. We believe an equity long/short strategy, implemented by experienced investors with proven skills, provides the best way to exploit these opportunities.

Europe is home to many successful global brands, innovating companies and entrepreneurial management teams. We believe Europe will remain home to quality companies demonstrating positive growth stories, which will allow stockpickers to generate returns and alpha in the future. In our view, the economic and political conditions in Europe will remain uncertain for some time and this is where our long/short strategy can be beneficial to investors – where we aim to efficiently capture uncorrelated European equity returns with managed volatility and downside protection.

INVESTMENT PHILOSOPHY

We believe that stock selection is the main driver of alpha generation and consequently our focus is on fundamental analysis. The philosophy of the European equity long/short strategy is based on identifying company valuation anomalies and investing in the differential.

Ultimately, the process focuses on stock fundamentals, but the portfolio managers also believe it is important to consider the macro environment in order to optimally position the portfolio. The portfolio managers do this qualitatively, via their market traffic lights, and quantitatively, using their propriety macro matrix

MARTIN CURRIE FOR EUROPEAN LONG/SHORT

  • Experienced and proven portfolio management team of Michael Browne and Steve Frost
  • Fundamental process aims to generate returns from bottom-up stock selection
  • Macro framework positions deliver long-term positive contributions from beta
  • Consistently generated uncorrelated alpha from the long book as well as the short book
  • In a historically volatile market we have been successful in delivering a stable sustainable return profile with significantly less volatility than the market

Past performance is not a guide to future returns.
Source: Martin Currie as at 30 September 2019. Strategy launch date 1 January 2001. Strategy figures from representative accounts using official NAVS calculated by the administrator and net of all fees and expenses. For the purposes of providing a continuous performance record since inception of the strategy, an illustrative record combining different accounts is used. The annual fee rate used is 1.0% with a 20% performance fee to May 2004 and 1.50% with a 20% performance fee thereafter. This strategy is not constrained by a benchmark but we show it versus the MSCI Europe (LC) for illustrative purposes only.