September, 2023
The Ironbark Royal London Concentrated Global Share Fund (the ‘Fund’) returned 2.81% (net) for the quarter, outperforming the MSCI World NR AUD by 3.24% which returned -0.43% over the period.
US listed pharmaceutical company and contributor to performance Eli Lilly (‘Compounding’) continues to see much excitement around their new diabetes drug Mounjaro. Already approved for diabetes, regulators are currently reviewing it as a treatment for obesity. In clinical trials, patients with obesity lost over 22% of their body weight. Mounjaro sales are ramping up, though have been hampered by supply constraints given the strong demand for the product. The drug has the potential to become the bestselling prescription drug of all time given its chronic use and wide addressable market. Japanese financial group, Sumitomo Mitsui Financial Group – ‘Mature’ announced earnings during the quarter that exceeded expectations, helping to drive strong performance from the shares. There is a focus on improving returns on capital and managing costs, which is appropriate for their stage of the corporate Life Cycle. The company has several initiatives to execute on especially in overseas markets, though key is the consistency of the attractive returns in the domestic market. The company continues to offer an attractive valuation pay-off. Korean bank, KB Financial in the ‘Mature’ part of the corporate Life Cycle performed strongly over the period. The company announced quarterly results that were ahead of expectations as interest margins and fee income improved.
HCA Healthcare the US hospital and clinic operator in the ‘Compounding’ segment of the Life Cycle, declined over the quarter. During the period the company announced second quarter results that were ahead of expectations and raised guidance for the full year. The investment manager continues to have a positive view on the wealth creation that the company can generate at the corporate level. Delta Airlines, a Turnaround, has been hurt by higher fuel prices in the recent period, putting some pressure on shares along with the potential for a significant increase in costs with the new contract for pilots. There is a shortage of pilots in the industry, which acts as a barrier to increasing industry capacity and limiting the potential for new low-cost airlines to enter the market. TSMC (Taiwan Semiconductor Manufacturing Company) the world’s largest fabricator of semiconductors declined over the period following a strong run earlier in the year. Capital expenditure expectations continue to increase as there is strong demand for semiconductor fabrication capacity driven by customers such as Nvidia. The company is in the ‘Slowing & Maturing’ Life Cycle category.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Ironbark-RLCGSF-Quarterly-Report-4.pdfJune, 2023
The Ironbark Royal London Concentrated Global Share Fund returned 11.52% (net) for the quarter, outperforming the MSCI World NR AUD by 4.03% which returned 7.49% over the period.
Contributors to performance over the period were Eli Lilly (compounding), Delta Airlines (turnaround) and Lithia Motors (slowing & maturing). US listed pharmaceutical company Eli Lilly (slowing & maturing) has seen a vast potential for their new diabetes drug Mounjaro, which is already approved for diabetes and regulators are currently reviewing it as a treatment for obesity. In clinical trials, patients with obesity lost over 22% of their body weight. Mounjaro sales are ramping up, though have been hampered by supply constraints given the strong demand for the product. The drug has the potential to become the bestselling licensed drug of al l time. The company also disclosed positive data on a new drug that they are developing to treat Alzheimer’s. Meanwhile, Delta Airlines has benefited from falling fuel prices and strong demand over the second quarter. Lithia Motors, the US online and physical auto dealership, also outperformed over the quarter. Used car prices remain very elevated versus long-term prices, and the valuation payoff on the business is attractive.
Detractors from performance with notable news during the period included Anglo American (turnaround), UPM (turnaround) and Apple (slowing & maturing). While mining giant Anglo American continues to benefit from elevated commodity prices, cost inflation has been an impediment to margins and cash generation. This came alongside some mixed results last quarter and a write-down on their investment in the Woodside mine, which the company is developing in the UK. The strategy exited this position during the quarter. Finnish forestry company UPM was also a detractor from performance as it has been a challenging operating environment for the company, and they have been more aggressively engaged in energy hedging and destocking as a result. There are market concerns around demand, but UPM are aiming to offset this with a favourable shift in business mix towards higher-demand products.
The investment manager maintains a positive view that new projects coming on stream will shift soon from being a cash drag to being cash generative. The company is pursuing an appropriate strategy for its position in the life cycle and has an attractive valuation payoff with optionality from their new investments. Apple (slowing & maturing), which is owned in the portfolio, albeit as an underweight position, outperformed over the quarter. The company continues to repurchase its own shares at a rate of circa 3% per annum, helping support the share price, this being one of the factors that has driven strong performance over the quarter.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Ironbark-RLCGSF-Quarterly-Report-3.pdfMarch, 2023
The Ironbark Royal London Concentrated Global Share Fund returned 11.58% (net) for the quarter, outperforming the MSCI World NR AUD by 2.50% which returned 9.08% over the period.
Reliance Steel & Aluminium Co, Constellation Software and Amazon contributed to performance during the first quarter. Reliance Steel & Aluminium Co, an American metal distributor and processor in the Slowing & Maturing category of the corporate Life Cycle, has been a strong contributor to performance over the quarter. Back in February, the company announced a strong set of results alongside positive forward-looking guidance. The company has been benefitting from strong industrial demand in the US, while the management team have continued to make sensible capital allocation decisions in line with its position in the Life Cycle, with a focus on returning cash to shareholders and an open attitude to wealth-creating M&A. Canadian diversified software company, Constellation Software in the Compounding stage of the corporate Life Cycle performed well over the quarter. The company announced a positive set of results, presenting an uptick in revenue growth and cash generation. Activity this quarter has reiterated the company’s commitment to continuing to compound, doing fewer but larger deals and continuing to decentralise the management functions. The company appears able to deploy large amounts of capital during periods of economic and financial stress which gives us confidence in its ability to continue to scale and compound going into future quarters. Amazon, “Mature”, was a key contributor to performance. Cloud growth has continued to slow but the company continues to deliver solid e-commerce performance and has shown good improvements over previous quarters particularly related to cash flow generation.
Detractors from performance during the period under review included Eli Lilly, UnitedHealth and Anglo American. Global pharmaceutical powerhouse, Eli Lilly in the Compounding stage of the corporate Life Cycle was a pull-on performance during the quarter. The market reacted negatively to weaker-than-expected news flow surrounding new drug Mounjaro. This was a demonstration for investment manager, along with the market, that it will take time for new drugs, even blockbusters, to have a material effect on financial performance, and more patience is advised to counteract some short-termism in markets. The investment manager does, however, maintain a positive view on the stock; as they are confident in Eli Lilly’s world-leading diabetes franchise and promising pipeline with strong ability to compound over a long-term time horizon. The investment manager remains comfortable holders of the company at this attractive valuation. UnitedHealth, “Compounding”, was a detractor this quarter. UnitedHealth delivered some good results at the top of the quarter with growth across its business areas, however, missed expectations for Optum Insight’s profitability was noted; there were headwinds to this business with lower inpatient volumes and delays on technology update and growth projects. The investment manager does not treat this as a structural issue and still maintain a positive view on UnitedHealth’s Compounding ability over the long-term at this valuation. Mining giant Anglo American in the Turnaround part of the corporate Life Cycle has been a detractor for performance over the quarter. While the miner continues to benefit from elevated commodity prices, cost inflation has been an impediment to margins and cash generation.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Ironbark-RLCGSF-Quarterly-Report-2.pdfDecember, 2022
The Ironbark Royal London Concentrated Global Share Fund returned 6.18% (net) for the quarter, outperforming the MSCI World NR AUD by 2.11% which returned 4.07% over the period.
Steel Dynamics, Sumitomo Mitsui Financial Group and HCA Healthcare were strong contributors to performance during the quarter of 2022. Steel Dynamics, the US steel manufacturing and fabrication business in the ‘Accelerating’ category of the Corporate Life Cycle, performed strongly from an operational perspective. Facilities were running at high utilisation levels. Beyond the commodity steel business value add is generated through offering customers coatings and painting of the raw steel, and an increasingly significant fabrication business. The company has reinvested in a new steel mill in Texas and is planning an aluminium mill. The shares joined the US S&P 500 Index on 22 December. Japanese financial group Sumitomo Mitsui Financial Group (‘Mature) –posted earnings that exceeded expectations this year, helping to drive strong performance from the shares. There is a focus on improving returns on capital and managing costs. The company has several initiatives to execute on especially in overseas markets, though key is the consistency of the attractive returns in the domestic market. The company continues to offer an attractive valuation payoff. US hospital operator HCA (‘Compounding’) benefited from the additional healthcare spending during the pandemic and then from the catchup of procedures that were postponed due to the pandemic. Labour availability and costs were a challenge earlier on in the year though the company is managing this and passing costs on through higher fees, demonstrating its pricing power.
Amazon, Lithia Motors and Alphabet detracted from returns over the period. Online retail giant Amazon in the ‘Slowing & Maturing’ category underperformed as a slowdown in the AWS cloud business growth was a notable concern as was guidance for the quarter. The investment manager continues to view the business as having strong competitive advantages and an attractive valuation payoff. Lithia Motors in the ‘Slowing and Maturing’ category of the Life Cycle has faced concerns about declining second hand car values and the continued shortage of new cars associated with supply chain disruption. The North American car dealership network had a challenging quarter for earnings. Having enjoyed high prices for used cars in recent years, supply chains are normalising and putting downward pressure on sales and margins. The investment manager’s analysis suggests that the valuation pay-off remains attractive as while short term trends are negative, the shares are pricing in an excessively negative scenario. Alphabet Inc, the parent company of Google ‘Compounding’ has been impacted by falling advertising rates as competition for space from other online companies has reduced pricing. There are concerns over the impact of AI products such as OpenGPT and what impact they might have on the search business. This is unclear now though the investment manager believes that there is increasing financial discipline at the company and the valuation pay-off remains attractive.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Ironbark-RLCGSF-Quarterly-Report-1.pdfSeptember, 2022
The Ironbark Royal London Concentrated Global Share Fund returned 0.33% (net) for the quarter, leveling the MSCI World NR AUD which also returned 0.33% over the period.
Steel Dynamics, HCA Healthcare, Reliance Steel and Amazon were strong contributors to returns in the third quarter. Steel Dynamics, in the ‘Slowing and Maturing’ Life Cycle category, has gained on the back of elevated steel prices which persist well above the pre pandemic average. Margins in the business remain elevated, supported by the fabrication business. Excess cash is being used for a combination of buybacks and investment into a new aluminium rolling mill. HCA Healthcare, the hospital giant in the compounding phase, during the period has actively managed higher labour costs which have increased in recent quarters. However, HCA is ultimately a solid long-term 'Compounder’ which benefits from unparalleled scale and high barriers to entry. There should be decent long-term growth opportunities with a focus on share buybacks between physical investments. Reliance Steel, in the ‘Slowing & Maturing’ Life Cycle category, has seen another quarter of record results with gross profit and cost control well ahead of targets. Cash generation meanwhile also continues to pick up. Reliance Steel has been ploughing cash into share buybacks over the last twelve months this has amounted to almost $600 million. The board has just given fresh authorisation for $1 billion of buybacks. Given the company’s attractive valuation, the investment manager believes this represents a good use of shareholders’ capital. Meanwhile, online retail giant Amazon in the ‘Slowing and Maturing’ category of the Life Cycle Framework announced a strong set of second quarter results – second quarter net sales were up 7% reported or up 10% at constant currency, which is a solid growth rate given the lockdown comparison. The cloud computing division, AWS, saw second quarter sales up 33% year-on-year and included the following comment in their results, “We believe we’re still in the early stages of enterprise and public sector adoption of the cloud.” The investment manager continues to see the valuation pay-off as attractive.
Lithia Motors, KB Financial and Tesla and Suncor Energy detracted from returns over the quarter. Lithia Motors in the ‘Slowing and Maturing’ category of the Life Cycle has faced concerns about declining second hand car values and the continued shortage of new cars associated with supply chain disruption. Competitor Carmax announced poor results and there are concerns that the environment could deteriorate further. The investment manager believes that the challenges are more than reflected in the current market price.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Ironbark-RLCGSF-Quarterly-Report.pdfJune, 2022
The Ironbark Royal London Concentrated Global Share Fund returned -6.82% (net) for the quarter, an outperformance of 1.65% when compared to the MSCI World NR AUD which returned -8.47%. Eli Lilly, Progressive, Ollie’s Bargain Outlet, United Health and Reliance Steel were strong contributors to returns in the second quarter.
Eli Lilly, the American pharmaceutical company in the ‘Compounding’ stage of the corporate Life Cycle, gained on the back of a positive reception to its recently FDA-approved drug Mounjaro, having demonstrated market leading efficacy in terms of weight loss. The drug has a strong ability to gain market share from the current GLP-1 drugs in obesity. Progressive, in the ‘Slowing & Maturing’ category of the Life Cycle, should continue to take share of the US auto insurance market.
The investment manager believes this will be driven by higher insurance premiums which help Progressive take market share. High prices are in part due to the cost of used cars and spare parts spurring higher claims costs. Higher interest rates should also improve returns on the investment side for Progressive. Ollie’s Bargain outlet, in the ‘Slowing & Maturing’ category of the corporate Life Cycle, gained in the aftermath of their first-quarter results – in particular, the market reacted well to the guidance the company offered. It is a highly scalable business model delivering consistently strong sales in the past. While there have been challenges, management has acted in a nimble way to ensure it can ride out the current era of uncertainty. United Health, in the ‘Slowing & Maturing’ category, amid defensive cash flows has held up well in a volatile market. The company also made a number of small acquisitions helping to continue to grow its network. Reliance Steel, in the ‘Slowing & Maturing’ category, has delivered strong stock performance over the year. Reliance Steel is reaping the benefits of strong demand across key end markets and a diverse product base. The investment manager is optimistic on the outlook of the company for the remainder of the year owing to robust demand in end markets amid continued strong demand in the nonresidential construction sector.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Ironbark-RLAM-Quarterly-Report-3.pdfMarch, 2022
The Ironbark Royal London Concentrated Global Share Fund returned -3.07% (net) for the quarter, an outperformance of 5.10% when compared with the MSCI World NR AUD return of -8.17%.
Steel Dynamics, Anglo American and Suncor Energy were strong contributors to returns in the first quarter. Steel Dynamics, the US steel producer that is in the ‘Slowing & Maturing’ category of the Corporate Life Cycle, has performed strongly as steel prices remained elevated. End-market demand is strong, yet domestic US steel production remains constrained, and the company is benefitting from the upswing in pricing. While Steel Dynamics is currently valued like a ‘typical’ steel company, it has a far more interesting and resilient business model and has been gaining market share. Its latest results included record earnings for the quarter and calendar year. Anglo-American (‘Mature’ category of the Corporate Life Cycle) has gained from buoyant commodity prices. The standout divisional performance in the company’s latest results was its copper division. The company’s Quellaveco copper mine is scheduled to come online in the middle of the year and will further increase capacity at a time of strong demand. Calgarybased oil producer Suncor Energy announced during the period that its fourth quarter revenues surged on the back of soaring crude prices and refined product prices.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Ironbark-RLAM-Quarterly-Report-2.pdfDecember, 2021
The Ironbark Royal London Concentrated Global Share Fund returned 8.06% (net) for the quarter, an outperformance of 0.99% when compared with the MSCI World NR AUD return of 7.07%.
UnitedHealthcare, Old Dominion Freight Line and Nvidia were strong contributors to returns in the fourth quarter. UnitedHealthcare in the ‘Slow & Maturing’ category of the Corporate Life Cycle gained during the period as the Optum healthcare arm of the business continued to grow at a fast trajectory.
The company’s third quarter results highlighted the continued evidence of the better integration of UnitedHealthcare (focused on health insurance) and Optum (focused on health services) to deliver superior outcomes at cheaper costs and an associated ability to share in that benefit. Old Dominion Freight Line the less than truck load freight delivery company that is in the ‘Accelerating’ category of the Corporate Life Cycle performed strongly amid the current shortage of truckers. The US has been grappling with a chronic lack of drivers for years, but the shortage reached crisis levels during the pandemic, which also sent demand for shipped goods soaring. In November, Old Dominion Freight Line’s revenue per day soared by 29.9% year-onyear, signalling ongoing strong demand. Old Dominion Freight Line’s premium service offering focusing on delivering on time and undamaged meant that the company announced in December a general rate increase of 4.9% for certain tariffs, effective January 3. Meanwhile, Nvidia ‘Accelerating’ contributed to returns amid strong third quarter results. The company had a strong quarter with milestones positive almost across the board. It is difficult to imagine how things could be going any better for Nvidia; it is benefiting from a refresh cycle in gaming & crypto as well as huge demand growth for its computer chips used in data centres
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Ironbark-RLAM_Factsheet.pdfJanuary, 2021
The Ironbark Royal London Concentrated Global Share Fund returned 8.12% (net) for the quarter, an outperformance of 2.27% when compared with the MSCI World NR AUD return of 5.85%.
Semiconductors stocks (Samsung, Micron and Taiwan Semiconductor), Safran and Anglo American contributed strongly to returns over the quarter. Samsung, which is in the ‘Turnaround’ category of the investment manager’s corporate Life Cycle classifications, and Micron (‘Slowing & Maturing’) are closely aligned as DRAM chips are a key component of their sales. Both companies benefitted from an upturn in the DRAM market, whilst this is not a perfect indication of the contract part of the market, spot prices for standard chips have increased 28% from their recent lows in August. Crucially, the manufacturers also stayed profitable across the cycle, which has not been the case in previous DRAM price cycles. As well as this structural boost, there is a long-term demand story as 5G phones require more RAM and the ongoing trend to digitisation, which has been boosted by increased remote working in the pandemic, is increasing the demand data centre servers. The strong performance of Taiwan Semiconductor (‘Compounding’) was related to the decline of Intel. Taiwan Semiconductor has achieved such an IP advantage in core and graphical processors that Intel has announced a strategic review and is considering outsourcing the manufacture of its processors to Taiwan Semiconductor. This transformative shift would be a major boost for Taiwan Semiconductor. As an example of its leadership, Taiwan Semiconductor is producing the M1 chip that is integral to the new Apple MacBooks. French aircraft engine manufacturer Safran (‘Slowing & Maturing’) performed well across the quarter. Following the lifting of some European travel restrictions in October, the broader hope of successful vaccine rollouts was very positive for travel-related companies. The company’s valuation remains attractive and it is well placed to benefit from a recovery in the airline industry. Anglo-American (‘Mature’) also benefitted from the general positive shift in sentiment. While metals have been more resilient than oil through the crisis, the possibility of a ‘return to normal’ next year, still boosted prices. As an example, copper rose 15.8% in the quarter to reach its highest level since early 2013.
Detractors from performance included Church & Dwight, Verizon Communications and Progressive Corporation. Having been an outstanding performer last quarter, US household products company Church & Dwight (‘Slowing & Maturing’) paused as the market shifted with the optimism around successful rollouts of vaccination programmes. The company’s defensive qualities had served it well through the recent challenging period with demand for its staple products holding up or even increasing despite the impact of the COVID 19 pandemic as well as the positive impact of a lower rate on its cashflows. It naturally underperformed as both factors reversed. The same applied to Progressive Corporation (‘Accelerating’). The US auto insurance specialist had performed particularly well earlier in the year as its revenue is particularly defensive, as insurance is a legal requirement and paid in advance, so is far less vulnerable to consumer discretion in a downturn. Given the early lockdown greatly reduced miles driven and accident claims, this led to a period of supernormal profit. As activity returned to more normal levels later in the year, this effect unwound. However, even with the quarter’s weaker performance, Church & Dwight and Progressive each returned roughly twice the level of the broad market over the full year. While the investment manager has taken some profits, both stocks remain key components of the Fund’s diversified portfolio approach. Verizon Communications (‘Mature’) was similarly affected by the rotation into ‘COVID 19 recovery’ stocks as the defensive cashflows of mobile telecommunications were less prized by investors. In addition, its revenues were impacted by lower international roaming activity (for which the charges are onerous for US consumers) and the launch of the new Apple iPhone 12, which delayed handset upgrades. Nonetheless, the investment manager remains positive on the rollout of 5G in the US, particularly as the company hopes to capitalise on this by offering 5G at home as a broadband connection.
Volatile market conditions and the rotation away from highly-rated growth companies to ‘COVID 19 recovery’ stocks provided opportunities to add to some holdings at attractive prices. In the run up to the US elections, the valuation of HCA Healthcare was attractive as its prospects as the largest-scale provider of hospitals across the US is compelling. Following a sector review, the investment manager added to South Korean bank KB Financial and separately added to Safran and Bridgestone. The investment manager felt the market’s reaction to Reliance Steel’s results provided an opportunity to add to this high-quality metal services company. Against these trades, the investment manager took some profits in a number of defensive stocks that have performed strongly through the crisis, including Taiwan Semiconductor, Church & Dwight, McCormick and car insurers Progressive Corporation and Admiral. The investment manager also reduced Japanese stationary supplier Kokuyu, feeling there are better opportunities elsewhere.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Ironbark-RLAM-Quarterly-Report-1.pdfSeptember, 2020
The Ironbark Royal London Concentrated Global Share Fund returned 3.57% (net) for the quarter, an underperformance of 0.10% when compared with the MSCI World NR AUD return of 3.67%.
Taiwan Semiconductor Manufacturing, Bandai Namco, Church & Dwight and Ocado contributed strongly to returns over the quarter. Semiconductor manufacturer Taiwan Semiconductor Manufacturing, which is in the Compounding category of the investment manager’s Corporate Life Cycle, reported strong quarterly results that confirmed that the semiconductor demand remains strong with the company delivering sales growth and market share gains. This confirmed the investment manager’s investment thesis. Intel subsequently announced that it is facing delays to its 7nm chip development, pushing large-scale production into 2022 and 2023, and as a result is considering outsourcing production to Taiwan Semiconductor Manufacturing. This would be game-changing and, despite the significant share price rise, the investment manager believes the valuation remains attractive. Japanese toys and gaming company Bandai Namco (Compounding) reported better-than-expected quarterly results. Despite a material impact from COVID 19, there was no change to full-year guidance as poor performance from arcades was offset by strength in home gaming. Its extensive catalogue of intellectual property across a wide range of formats, combined with a focus on new content creation and better monetisation of existing intellectual property, should support steady wealth creation. This does not appear to be priced into the current valuation. US household goods company Church & Dwight (Slowing & Maturing) reported excellent quarterly earnings with organic sales growth, earnings and margins all significantly higher than analysts’ forecasts. The high-quality management team continues to deliver in challenging circumstances. Food home delivery platform Ocado (Accelerating) garnered extensive press coverage for its tie-up with Marks & Spencer in the UK, the first time that Marks & Spencer food has been available online. However, the stock outperformed on increased appreciation of its world-leading logistics technology platform. At around $22 billion (in USD terms), its market capitalisation compares very favourably to US technology companies, particularly if its platform can be rolled out to non-food home deliveries.
Detractors from performance included Suncor Energy, Eli Lilly and Handelsbanken. Suncor Energy (Turnaround), the Canadian oil sands producer, was hit by the weakness in global oil companies. Despite more stable oil prices, the sector was notably weak over the quarter as investors increasingly considered the risk of stranded assets in a carbon-neutral future. Despite strong headline earnings per share, US health care giant Eli Lilly (Compounding) reported disappointing quarterly results. Revenue and operating income were below consensus forecasts, with the shortfall being covered through other income with a rise in the value of the company’s investment portfolio. The health care sector has also been affected by an unwinding of speculation about the imminent approval of a vaccine for COVID 19 and some stocking effects as we went into lockdown. The company had been a beneficiary of these earlier in the year. Swedish bank Svenska Handelsbanken (Slowing & Maturing) had interesting quarterly results. While the environment is generally poor for banks, with ultra-low and negative interest rates impacting profitability and higher defaults likely on corporate and personal loans, Handelsbanken asserted that it isn’t being affected by loan impairments due to the informational advantage of its decentralised and more personalised approach. The market was less convinced, despite its plan to cut significant costs through branch closures, but the valuation is compelling for an above-average bank with clear competitive advantages.
The considerable disparities in share price and underlying business performance over recent months led to some repositioning of the Fund during the quarter. Notable trades included switching Bayer into the Finnish paper manufacturer UPM-Kymmene, based on its wealth-creating strategy, switching from Raytheon into Reliance Steel, which the investment manager feels isn’t properly appreciated by the market and selling TJX Companies, on concerns about its strategy and high valuation, and Lloyds Banking Group. The investment manager initiated a position in Apple, where they consider the compounding wealth-creation opportunity supported by services and wearables to be attractive. Additionally, the investment manager added to holdings in Safran, Berkshire Hathaway and Visa on valuation grounds.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Ironbark-RLAM-Quarterly-Report.pdfticker: MGL0004AU
commentary_block: Array
factsheet_url:
https://ironbarkam.com/wp-content/uploads/2015/04/Ironbark-RLAM-Quarterly-Report.pdf
https://ironbarkam.com/funds/ironbark-royal-london-concentrated-global-share-fund/
release_schedule: Quarterly
fund_features:
Ironbark Royal London Concentrated Global Share Fund seeks to outperform the MSCI World NR (AUD) by 2-3% after fees, over rolling five year periods through investment in a focused selection of equities on a global basis. The Fund adopts a high conviction, long-only stock picking approach that invests in listed shares of 20-45 companies around the globe, which aims to:
- Create shareholder wealth as a result of their intentional management strategy and/or business models;
- Identity stocks that are priced at a significant discount to conservative estimates of cash-based, long-term intrinsic value; and
- Demonstrate a reasonable investment ‘margin of safety’ in the analysis of the above two attributes.
manager_contact_details: Array
asset_class: Foreign Equity
asset_category: Large Blend - Fundamental
peer_benchmark: Foreign Equity - Large Fundamental Index
broad_market_index: Developed -World Index
structure: Managed Fund