Analysis of the Lemanik SICAV Fund – Global Equity Opportunities
4 NOV, 2024
By Andrea Sepúlveda from LatamSelf
The Lemanik Global Equity Opportunities fund is a high conviction global equity fund, domiciled in Luxembourg and launched in 2008, with nearly 20 years of history. Moreover, it is a fund considered to be an ESG promoter and is classified as Article 8 according to the SFDR regulation.
Characteristics of the Lemanik SICAV - Global Equity Opportunities fund
The main characteristics of this fund are these:
- Investment strategy: To implement this high conviction strategy, the team maintains a bottom-up fundamental analysis and prefers companies with high cash generation and strong growth, at reasonable valuations. In addition, these companies must have a sustainable business model. Considering the long-term approach, the company states that the strategy has a low portfolio turnover. This is possible thanks to active risk management, selecting high-quality companies, characterized by strong resilience during bear market phases and a remarkable recovery capacity.
- Benchmark index: The strategy is actively managed against its benchmark index, the Bloomberg Developed Markets Large & Mid Cap Index, used exclusively for comparative purposes. This allows the team to apply the investment strategy with total discretion, without constraints regarding deviation from the benchmark.
- Investment team: The fund's investment team is led by Filippo Garbarino, with over 20 years of experience in the financial sector, particularly in global equity markets. He spent ten years in Investment Banking (Corporate Finance and M&A) in major international companies and another ten years in the wealth management sector.
- Management company: Lemanik, the management company, is an independent company with a stable group of partners, founded in 1971 in Lausanne, Switzerland. In particular, Lemanik Asset Management is a leading management company with offices in Luxembourg, Ireland and Hong Kong. Among its clients are institutional investors, wealth managers and financial advisors. Lemanik AM serves over 100 clients with over 30 billion euros of assets under management.
- Assets: at the end of September 2024, the Lemanik SICAV - Global Equity Opportunities strategy managed more than 50 million euros in assets.
Evolution of the Lemanik SICAV - Global Equity Opportunities fund
Note: Past returns do not predict future ones. The fund's returns may increase or decrease depending on exchange rate fluctuations.
One of the advantages of analyzing a fund with a long history is the ability to compare it with its benchmark over extended periods, to evaluate the consistency of the strategy and long-term results.
Looking at the table above, it is noticeable that the fund has had a mixed performance compared to the benchmark, the Bloomberg Developed Markets Large & Mid Cap Index. This might make the fund seem inconsistent, but, considering the high conviction and long-term philosophy, it can be hypothesized that the team's choices withstand market fluctuations, with greater potential over a longer time horizon.
As shown in the table, the strategy is strongly oriented towards developed markets, as the fund invests at least 70% of its net assets in securities of these markets, mainly in the United States and Western Europe.
From a sectoral point of view, the portfolio is more diversified, with a prevalence in the sectors (+60% overall): Software and Technological Services, Industrial Products, Healthcare and Industrial Services.
The top 10 companies in the portfolio represent over 60% of the total fund, confirming the global selection approach and the strong concentration of the portfolio. The fund holds 21 companies, while the benchmark has over 1,200.
Conclusions
Advantages
- Team expert in the asset class
- High conviction global investment
- Attractive for ESG investors
Disadvantages
- Reduced size for institutional clients (<100 million USD)
- Poor consistency in results
