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| Manager | |
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| Strategy | |
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| Latest 24 Months (pa) | |
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| Fund Overview | The investment process involves a combination of top-down analysis with fundamental bottom-up qualitative and quantitative research to derive a risk-adjusted discounted cash flow (DCF) valuation of companies in the target universe. The investment team will generally buy stocks from the pool of securities that are trading below Loftus Peaks' valuation and sell them when they are trading above Loftus Peak's valuation. The approach allows for both fundamental accounting information as well as market-oriented inputs to be factored into the portfolio construction process. Loftus Peak's model typically does not rely on leverage to deliver investment returns and specifically takes into account risk in the valuation process. Capital preservation can be managed by holding up to 50% cash. Index and currency options and futures may also be used to manage risk. |
| Manager Comments | The best performing investments in the strategy were in companies with well-developed digital strategies allowing users to work and play while sheltering in place - companies such as Amazon, Microsoft, Nvidia and Nutanix. Loftus Peak remain confident these companies will continue to deliver in a post-COVID world, especially those with strong cashflows (Apple) and successful business models (Netflix). The main detractors were Roku and Amazon. Loftus Peak noted investors appeared wary of Amazon's current quarter strategy which will see the company deploy all of its quarterly cashflow (around US4$b) to hardening its business against biohazards such as COVID-19. Roku's share price continues to be weighed down by the market's expectation of additional competitive pressures which Loftus Peak believe are overstated. With many investee companies approaching valuation targets, Loftus Peak took the opportunity to take profits and raise the Fund's cash weighting during the month. |
| More Information |
