The OYSTER Continental European Select fund is a conviction based portfolio, typically investing in 30-40 companies in Europe. The strategy is to invest in contrarian high quality companies for the long-term. These companies will typically have a sustainable competitive advantage and will be trading at attractive valuations. The mandate is flexible, meaning the fund will move towards either value or growth depending on market conditions and the portfolio composition, which differentiates it from peers. Another key differentiator is the managers stringent focus on valuation, which dictates which companies are investable and when.
The fund has a structural bias away from the giant and large-cap companies, instead focusing on mid and small-cap companies. The sector positioning will also differ versus the benchmark, with a focus on those with constituents demonstrating strong brands and dominant market share, such as industrials and consumer cyclicals. It is unlikely the fund will invest in Utilities or Telecommunications.