Presentation on theme: "A Global Stock Picking Fund. Table of Contents 1.Fund History and Structure 2. Flam Gestion Profile 3. Investment Objective and Philosophy 4. Investment."— Presentation transcript:
A Global Stock Picking Fund
Table of Contents 1.Fund History and Structure 2. Flam Gestion Profile 3. Investment Objective and Philosophy 4. Investment Process 5. Track Record 6. Investment Examples 7. Fact sheet 8.Contacts 9.Disclaimer
Fund History and Structure 1.Created in 2003 by a group of highly experienced investment professionals. Excellent out-performance through Experienced sharp under-performance in due to severe market volatility in global markets and the sudden retirement by the then Investment Adviser. 2.Board of Directors, after a thorough search for a new Investment Adviser, appointed Flam Gestion in Switzerland to take responsibility for managing the portfolio. 3.Flam Gestion took over the portfolio on 1st October 2009 and restructured the portfolio drastically and reduced its volatility. The fund is now in good shape to generate superior risk-adjusted returns again. 4.Gibraltar-domiciled fund managed by Sovereign Asset Management Limited.
Flam Gestion Flam Gestion is the fund’s Investment Adviser responsible for the day-to-day investment and risk management of the portfolio. Founded in 2005 by a group of investment professionals and wealthy individuals, we are a Swiss regulated company specialising in managing active portfolios for institutions and high net worth individuals. A team of 3 principals, led by Mr Fournier-Barrand, manage this fund using a clearly defined, consistent and disciplined approach. - Francois Fournier-Barrand, CIO and partner of the firm. A former executive at LODH, Switzerland, he has more than 15 years of successful experience in managing European equities portfolios. He graduated from Ecole du Rosey, EPFL-mathematics, HEC St. Gall and HEI. - Pierre Levin, COO and partner of the firm. A former adviser to the French stock exchange, he has extensive experience in structuring and managing equity funds, as well as in corporate finance. He graduated from Ecole des Mines de Paris and HEC Paris. - Haresh Balani, Head of UK operations. A former fund manager at Cheyne Capital Management, Bessent Capital (of Soros Capital), Global Asset Management and Dresdner Thornton Asset Mngt, he has extensive experience in managing funds and analysing markets and companies. He graduated from the Wharton School of Finance.
Investment Objective and Philosophy Philosophy Focus at least 75% of asset allocation to high growth countries/sectors. The fund also invests in special situations such as earnings turnarounds, corporate restructuring, M&A, etc. Employ both a “top down” approach wherein we research and analyse the macroeconomics of countries to determine broad investment views, and a “bottom up” approach which leads to specific equity investments and portfolio weightings. Prioritise companies with strong fundamentals, sound management, attractive valuations and high growth potential. Employ no derivatives except for currency hedging or to cover a substantial market risk. Typically remain un-leveraged. Objectives Primary - Generate consistently superior risk-adjusted absolute long term capital appreciation. Secondary – Outperform world equity markets with lower comparable volatility.
Investment Process Execute process from an investment universe consisting of 400+ companies worldwide about which substantial analysis and trading experience have been accumulated. Those companies have been selected within high growth countries and/or sectors for their capacity to outperform their peers. Continuously monitor the universe to identify new investment opportunities, both core holdings and trading ideas, subject to our investment process. Generate country and sector allocations from macroeconomic, industrial and thematic analysis which we believe regularly trigger large delta in stock valuations. Select within those allocations the potential investment targets representing the most attractive equities. Engage in rigorous fundamental analysis of target companies through intensive research into the company’s businesses, managements, valuations and catalysts to reach high-conviction investment decisions and maintain the optimal portfolio structure. Refine buy and sell target prices and timing to optimize performance and minimise volatility, using among other methods advanced technical analysis.
Historical Volatility of the Fund vs. MSCI World Index
Examples of Invested companies The following pages provide further insight into how we translate our investment process into investments. We give several examples of core and non-core holdings in the Fund currently or previously if sold. For each position a summary of the investment rationale, along with the price chart, is provided.
Top Glove Corp Bhd World’s largest latex glove maker, based in Malaysia. Growing market, supported by pandemia fears and healthcare dynamics. Pretax income has tripled in the last four years, 5-year average ROE of 25% and forecast to boost dividends per share significantly again. Solid management team and reasonable PE of 13.5X FY11. Bought position in 2004, partial profit-taking in 2010.
Top Glove Corp Bhd
World leader in seismic research for oil and gas exploration and reserves development for their clients. Increasing oil demand and high depletion rate of existing fields are forcing major oil companies to look for new fields. Strong pricing power and 90 % booked order backlog. Stock price still 50% off 2007 peak while crude oil is only 10% off 2007 peak. Valuations still looking cheap with P/CF 7X, P/B 1.3X Bought initial position in November CGG - Veritas
Sino Biopharmaceutical Chinese leader in pharmaceutical distribution. With a substantial pipeline of new drugs, they are ideally positioned to benefit from the steep growth of healthcare demand in this huge market. Tremendous gross margins, close to 80%, allows the company to allocate capital towards R&D and heavy marketing and distribution of commercial drugs. Dividend pay-out ratio over 40%, reflecting the cash-richness of the company’s balance sheet. With EPS compound growth of 20% expected over the next 2 years, an ROE of 16% and a prospective PER of 16X, the stock still offers above-average capital appreciation. Bought from 2003 onwards.
Australia’s largest holder of coal seam gas acreage with access to exceptionally huge reserves of natural gas. A Shell/PetroChina jv has acquired Arrow’s domestic business for a 35% premium and it’s international business will be demerged into a new company called Dart Energy, with existing shareholders receiving pari passu shares. Given the high valuation of 21X PE and 3.3X PBR, the fund, which went long the stock in 2008, expects to lock in capital gains and switch to coal stocks such as Archcoal which we believe has more upside potential. Arrow Energy
Fact Sheet Structure: Investment Manager: Sovereign Asset Management Limited, Gibraltar Investment Adviser: FLAM Gestion. Base currency: USD. Minimum investment: USD 100,000 Weekly liquidity; dealing date to subscribe/redeem is every business Wednesday. Custodian: SG Hambros Bank, Gibraltar Administrator: Helvetic Fund Administration, Gibraltar Auditor: Deloitte Limited ISIN: GI000A0M1RG2 SEDOL: B246Q65 Bloomberg ticker: PLAFUNU TL Equity
Contacts FLAM Gestion 6 Chemin de Bellerive, 1007 Lausanne Switzerland Francois Fournier Barrand CIO Tel Pierre Levin COO Tel Haresh Balani Head of UK Operations Tel
Important Notice and Risk Warning Planetary Fund does not guarantee the accuracy, adequacy or completeness of any information contained herein and is not responsible for any omissions or for the results obtained from such information. Expressions of opinion herein are subject to change without notice. These materials do not constitute an offer or solicitation of an offer to buy or sell any shares or securities of shares in any fund. Planetary Fund (the Fund) is regulated by the FSC of Gibraltar. Subscription for shares in the Fund can only be made under the terms of the prospectus and in such jurisdiction where such sale is permitted. The Fund is currently registered in Gibraltar. Past performance is no guide to future performance and the value of shares in the Fund may go up as well as down and may fluctuate due to, amongst other reasons, changes in the exchange rate and in the value of underlying investments. Copyright in this document shall be the property of Planetary fund plc. No part of this publication may be reproduced or transmitted in any form by any means, electronic or otherwise, without the prior permission of Planetary Fund plc.