Daniel Stewart has launched a new Dynamic Opportunities Fund, which aims to invest in the best companies, in the best sectors, in the best markets. The Fund aims to make a positive return every year and has two distinguishing features.
Firstly it focuses on stocks that are anomalously cheap – ie there is no obvious explanation or if there ever was one, it has lapsed – and secondly, taking profits when market perception catches up with the reality, which can take up to nine months.
The fund will typically hold 30-40 positions at any one time with no individual position greater than 5 per cent of total capital.
Any individual holding will usually have a market capitalisation in excess of US$1 billion ensuring high levels of liquidity at all times, thereby enhancing the ability to respond to any news flow that changes the fundamental underlying story.
Meanwhile risk control is embedded with a clear ‘two strikes and out’ policy on individual positions: allowing for opportunistic further investment in response to an initial price fall while a second fall will result in a sale. Overall, it is expected that an investment in the Fund will represent a medium to high risk for investors.
The Fund will be managed by Chris Bailey, who has over 20 years of investment industry experience at long-only and long-short institutions as a global multi-asset fund manager of UCITS and mutual fund products, as a strategist/macro thinker and, in the earlier part of his career, as a securities and fund analyst. He founded Financial Orbit Limited in 2013 to provide macroeconomic comment and securities analysis with relevance for global investors. In the last four years under the Financial Orbit Limited banner Chris has further evolved his global stock picking methodology to encompass more recent developments in global financial markets.
At the start of 2016 he started publishing for subscribers a preferred list selection of global shares outside the UK achieved a total return of 29.9 per cent (versus a benchmark return in US dollars of 18.5 per cent) over the 15 months to the end of March 2017. Meanwhile a preferred list selection of pan-European investments (including the UK) rose 34.6 per cent (versus a benchmark return in British Pounds of 27 per cent) over the same period. This has proved an ideal lead-in to the launch of the Dynamic Opportunities UCITS Fund.
Peter Shea (pictured), Investment Committee Chairman and Chief Executive Officer of the Company, says: “Daniel Stewart is very excited about this new fund which has been launched as a natural result of the knowledge and experience our team has developed over our many years measuring and assessing global markets. Chris’ historic success as a CIO is an important addition to the Dynamic Opportunities Fund and together with Alastair Winter, our Chief Economist’s extensive and nuanced micro- and macroeconomic knowledge we look forward to the future success of both the Fund and the Company.”
Chris Bailey, Chief Investment Officer, says: “We believe that this type of fund, that has the ability to respond to news flow quickly and effectively, will create real opportunities for our clients. We are only looking for the best ideas in the best markets, which we will evaluate both daily and weekly, keeping a close eye on small indicators that could signal large opportunities. In ever increasing volatile markets we believe that fastidious and creative fund management, that looks for large gains over the short term are where the real opportunities lie.”