Garraway Global Equity Fund - Shrewd Stock Selection
A crucial part of our investment philosophy is to focus on those companies which have an economic moat; some sort of competitive advantage over others in their field. As these companies tend to dominate the market, it is extremely difficult for their competitors to take market share away from them. Crucially for our investment philosophy, these are the businesses that, thanks to their competitive advantages, have high sustainable profitability margins and the ability to create long term shareholder value by compounding high returns on capital employed over time.
With potential Covid-19 breakthroughs fuelling investment in healthcare companies, the importance of shrewd stock selection is again brought into sharp focus. Speaking to Portfolio Adviser, Malcolm Schembri, manager of Garraway Global Equity Fund, recently explained how snatching at coronavirus hope could hurt investors.
Top performing fund
Garraway Global Equity Fund B Class GBP returned 9.59% in the month of May, outpacing the MSCI world return of 7.09% and the FO Equity International sector which appreciated 4.33%. Year to date, the Fund is amongst the top performing funds within its peer group with a return of 11.75% compared to the MSCI year to date loss of 1.15% and the FO Equity International sector decline of 7.28% (all figures quoted in sterling).
Please click for the full commentary included within the latest Fund fact sheet.
About Garraway Global Equity Fund
Quality Firms > Strong Cashflow > Sustainable Returns
Garraway Global Equity Fund is a high conviction, quality focused, unconstrained global equity fund harnessing fundamental bottom-up research to construct a concentrated portfolio of best ideas.
It is a fund with defensive characteristics, focussing on consistently high-quality, market-leading companies which have repeatable income streams and strong free cash flow generation, allowing their first class management teams to redeploy at highly favourable rates of return time and again. It avoids the uncertainties associated with cyclical companies such as banks and commodity companies, as well as overly leveraged firms.
• Active fund with an AMC of 0.25% currently available via a founder class.
• Highly concentrated, benchmark agnostic approach.
• Focus on companies with long-term structural tail-winds which generate sustainable operational and financial performance.
• Track record of delivering across the sector and market cap spectrum.
• Emphasis on stocks with high levels of profitability and redeployed cash flow.
• Available on most major retail platforms.
• We provide dedicated Fund Manager access to our clients.