The fund is run in an unconstrained manner and provides exposure to a diverse range of European countries and sectors. The portfolio will generally hold between 45 and 65 stocks dependent on the opportunity set. David seeks companies that have robust business and financial models and management teams that can deliver on their business objectives. He has a bias towards large cap stocks and companies that have strong brands and intellectual property, such as patents.
David is an advocate of using ‘Porters Five Forces’ as a way to assess the quality of a business and their competitive edge. Portfolio construction is driven purely by stock selection, paying little or no regard to the benchmark.
We like this fund as it is run by a manager who has a strong background in managing European equities, who uses a focused and repeatable investment process with its foundations built around ‘Porters Five Forces’. The manager over his career has demonstrated an ability to protect capital in down markets, due to the more defensive nature of the stocks he invests in.