Global Equity Investment Fund Evenlode Takes Strides, Revels in 50% Returns
Exclusive Equity Investment Strategy: Premium Fund Relying on the Select Few from the Seven Elites
Hold onto your hats, folks! The Evenlode Global Equity fund is celebrating its fifth birthday and smashing returns for investors. Since its launch in 2017, it's managed to top 50% returns - a feat that puts it head and shoulders above the global peer group average of 35%.
This impressive showing is no accident, thanks to the rock-solid investment process of Chris Elliott and James Knoedler. Their strategy revolves around investing in some of the world's top companies at attractive prices and then holding onto them for the long haul. They're all about companies that generate piles of cash, no matter the economic climate.
"We aim high," says Knoedler. "We want to build trust with our investors and keep them on board for as long as possible. Sure, as equity investors, we can't buck the big market swings we've all seen recently, but we try to minimize their effects by finding companies that are deeper in the wave rather than those riding at the crest."
You might wonder why this fund isn't packed to the gills with the hot US stocks everyone's talking about (we call 'em the "Magnificent Seven" - Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla). Well, it turns out that Global Equity has relatively light exposure to these giants. Why? Because the team prefers to focus on high-quality companies with strong cash flow and a solid foundation, rather than following the crowd.
As of now, the fund only has sizable holdings in Alphabet and Amazon, and a smaller stake in Microsoft, which has seen a reduction in its exposure since July due to concerns over the mismatch between AI expenditure growth and revenues. The other "Magnificent Seven" companies aren't totally absent, though. Nvidia manages to squeeze its way into the 83-strong universe of investable companies that Evenlode selects stocks from.
"The portfolio isn't built on fancy trends or the state of the global economy," affirms Elliott. "Across Europe and the UK, there are plenty of undervalued companies with international revenues and robust businesses that we like."
Some of the European and UK companies that call Evenlode home include Wolters Kluwer (Netherlands), L’Oreal (France), RELX and Diageo (UK), London Stock Exchange, Informa, and Clarksons.
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"This ain't a fund where we're constantly buying and selling stocks," adds Elliott. "Sometimes there are valuation opportunities, but our goal is to hold the companies we own for six, seven years, or more."
This year, the fund has made just two changes: buying stakes in The New York Times and Booking Holdings while dumping Airbnb. Why the switch? Elliott explains, "The New York Times is racking up strong subscription growth and has the ability to offer customers popular products like Wordle." Knoedler chimes in, "Booking Holdings is a digital business that's benefiting from the rise in leisure travel, and it's less reliant on the US market than Airbnb."
Evenlode operates as a snug, efficient investment ship with five fund managers based in Chipping Norton, Oxfordshire. With assets exceeding £4.6 billion, they're responsible for four funds: Global Equity, Evenlode Income, Global Income, and two European funds.
Unlike other asset managers, Evenlode specializes in what they do best - investing for income and managing global portfolios. FundCalibre rates Global Equity, Income, and Global Income as "elite" status. The annual charge on Global Equity is 0.85%. Unfortunately, this fund doesn't deliver much income, with a yield of just 0.3%.
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- The Evenlode Global Equity fund, based in Chipping Norton, Oxfordshire, is celebrating its fifth birthday and has managed to top 50% returns for investors, significantly outperforming the global peer group average of 35%.
- The fund's success is attributed to the investment process of Chris Elliott and James Knoedler, who focus on investing in top companies at attractive prices and holding onto them for the long haul, with a preference for companies that generate significant cash flows.
- Despite the fund's strong performance, it has relatively light exposure to the "Magnificent Seven" US stocks, such as Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla, due to a focus on high-quality companies with strong cash flow and a solid foundation.
- In terms of European and UK holdings, the fund includes companies like Wolters Kluwer (Netherlands), L’Oreal (France), RELX and Diageo (UK), London Stock Exchange, Informa, and Clarksons.
- Elliott and Knoedler, the fund managers, aim for a long-term approach, with the goal of holding the companies they own for six, seven years, or more, and they have made just two changes to the fund this year, purchasing stakes in The New York Times and Booking Holdings, while selling Airbnb.
