We believe that success in equity investing requires a high degree of specialism, with investment approaches honed to reflect the distinctive nuances of diverse stock markets. Consistent with this belief, we have created an environment in which talented investment teams can thrive, taking true accountability for their performance, while being unencumbered by an imposed ‘house view’ or investment style. Over time, we have built and nurtured capabilities across global, UK, European, Asian and emerging market equities, offering a multitude of long-only and long/short capabilities, and covering different parts of the market capitalisation spectrum.
The managers believe that markets are not fully efficient and that stock prices often diverge from their fundamental value due to investors’ behavioural biases.
The investment process seeks to exploit these biases in a dynamic and efficient way, pursuing outperformance driven principally by bottom-up stock selection.
The team believes that a performance-oriented investment strategy should also be flexible, so that the prevailing conditions and outlook can be incorporated, thus ensuring the greatest scope for sustained outperformance.
The team has three portfolio managers. Ian Heslop, has a PhD in medical chemistry and over 18 years’ investment experience. Amadeo Alentorn has a PhD in computational finance and Mike Servent holds a BA in physics from University of Oxford. The portfolio managers are supported by three analysts, Yuangao Liu, Sean Storey, Matus Mrazik and investment strategist Justin Wells.
Long-only global equities
The strategy is characterised by a highly distinctive, flexible approach with no style bias. At the heart of the process is a powerful, 5-factor proprietary stock selection model. The result is a portfolio with the potential to offer excellent diversification from more traditional global equity strategies. The strategy offers access to a large opportunity set, underscored by a demonstrably repeatable, dispassionate investment process.
Long-only North American/US equities
The strategy is characterised by a highly distinctive, flexible approach with no style bias. At the heart of the process is a powerful, 5-factor proprietary stock selection model. The result is a portfolio with the potential to offer excellent diversification from more traditional North American equity strategies. The strategy offers access to an opportunity set of approximately 1,400 stocks, underscored by the global equity team’s demonstrably repeatable, dispassionate investment process.
Long-only Asia ex-Japan equity income
The fund is designed to capture and enhance the opportunity set afforded by Asian equities, by harnessing a unique, but highly diversified investment process. Adopting both top-down and bottom-up characteristics, the team focuses on stock selection across sectors by employing a combination of fundamental investment techniques, based on company-level data, with an evaluation of the prevailing market environment and levels of investor risk appetite across the investable universe. The team has strong conviction that this unique approach can deliver significant diversification from conventional concentrated, style-embedded funds. Unusually for an Asian equity income fund, the portfolio managers run the fund to achieve monthly distributions.
Long/short, market-neutral global equities
Systematically driven, highly diversified, long/short global equity market neutral strategy, employing a flexible approach with no style bias. The strategy benefits from a powerful, five-factor proprietary stock selection model resulting in portfolios with the potential to be genuinely uncorrelated with peers. The approach offers access to a large opportunity set, underscored by a demonstrably repeatable, dispassionate process.
The overriding aim of the team is to invest in companies displaying quality at a reasonable price, quality being defined as companies with a defensible competitive advantage or ‘economic moat’, strong management team and displaying robust corporate governance characteristics. These attributes are typically found in companies with a high return on invested capital.
The team’s investment process has a strong bottom-up focus and it models all potential candidates for inclusion in the portfolio using a bespoke discounted cashflow model to establish intrinsic values. These are then compared with the prevailing market price to ascertain whether or not a discount exists. A discount typically justifies a buy recommendation.
The highly experienced team, headed by Nick Payne, includes fellow fund managers, Salman Siddiqui and Liz Fernandes.
Merian Global Emerging Markets Fund
The strategy invests across emerging and frontier markets through a high conviction portfolio of 30-40 companies that, the managers believe, possess strong business models, healthy balance sheets and, as yet, unrecognised investment potential.