Geneva boutique launches high conviction global equity strategy
Swiss asset management company Forum Finance has launched a high conviction global equity strategy, which was developed by Charles-Henri de Marignac (pictured).
The strategy is structured in the form of a Luxembourg reserved alternative investment fund, which is not registered for distribution in Switzerland and is only available to qualified investors.
The fund seeks to outperform the MSCI World equity index over a full economic cycle. It relies on a fundamental “bottom-up” analysis to find investment opportunities with a medium-term perspective.
Leverage’s use is capped to 30% per position. The portfolio consists of seven to 20 positions, all being strong convictions of Charles-Henri de Marignac, who personally invests alongside other investors.
The manager considers investments in companies with a robust and well-established model that generate surplus cash flow on a sustainable basis.
Four fundamental principles are set prior to any investment: an easily understandable business model, clear perspectives, reliable management and accounting methods, and a reasonable valuation. Then a scoring system determines the maximum weighting of individual positions.
Before joining Forum Finance in February 2017, de Marignac spent four years at Mirabaud & Cie as portfolio manager. Previously, he was an equity analyst and fund manager at S.W. Mitchell Capital in London between 2008 and 2012.
“There are exceptional companies like Coca-Cola or Swedish Match, whose products enjoy strong customer loyalty. This allows them to set higher prices and invest continuously to stay one step ahead. So when we find the rare bird and its value is attractive to us, we can invest up to 15% of the portfolio,” commented de Marignac.
Forum Finance was founded in 1994 and has over €1bn in assets under management or advisory.