Innovation Fund

Investment Philosophy & Construction

We focus exclusively on high-quality global innovators that are attractively priced and demonstrate double-digit, medium-term secular growth. The Fund, consisting of 10 to 30 securities, seeks to capture opportunities across geographies, sectors, and market capitalizations. This flexibility enables us to deliver maximum value in evolving market environments, balancing focus and conviction with the agility to embrace promising new ideas. Our portfolio is typically concentrated in technology, communication services, consumer discretionary, and healthcare sectors, with a bias toward mid to large-cap companies.

While reasonable comparisons can be made to the S&P 500, Nasdaq, and MSCI All Country World indices, the Innovation Fund stands in a class of its own. Our focus on quality means the portfolio’s average return on equity, return on capital employed, and operating margins will likely exceed benchmark medians—offering the potential for greater returns and, in our experience, enhanced stability during downturns.

The Fund’s long/short structure is designed to enhance client returns while staying true to our primary objective of identifying undervalued growth opportunities globally. We employ shorts tactically, maintaining a predominantly net-long portfolio. Our top short candidates are typically companies where business realities have significantly diverged from market expectations. These positions often face challenges such as declining pricing power, market share erosion, cost pressures, worsening industry dynamics, governance concerns, or balance sheet vulnerabilities. We pair these headwinds with a clear catalyst and defined time horizon to execute the short strategy effectively.