This is a long/short European equity fund aiming to deliver positive absolute returns over 3 year rolling periods. There is no separation of the role of portfolio manager and analyst, all members of the team work on stock ideas. Argonaut use a distinct earnings surprise investment process. They believe that stock prices move based on the difference between the market’s expectations of future and actual corporate profits. Therefore, their focus for research is on finding companies where the market is significantly over- or underestimating future profitability. In addition, they seek companies where there is good earnings momentum.
We like this fund and manager, as the earnings surprise focus distinguishes them from most traditional equity managers. Barry is a manager with a long track record in investing in European equity and has been very successful at doing so. Equally the performance of this fund has been strong over the longer term.