Exploring the Ranmore Global Equity Fund’s Investment Strategy

According to recent analyses conducted by Saltydog Investor, one particular global equity fund has consistently outperformed its peers, showing exceptional resilience and returns despite minimal exposure to the U.S. market and the technology sector. The fund in question is the Ranmore Global Equity Fund, which has successfully topped return charts with only 25% allocated to the U.S. as of April 30, 2023.

Performance Metrics: A Three-Year Overview

Every three months, the Saltydog team meticulously evaluates funds, searching for those with a minimum return of 5% across each six-month period over the last three years. Their latest data crunching for the period ending April 30, 2023, reveals that the Ranmore Global Equity Fund achieved a remarkable six cycles of returns, meaning it has delivered over the 5% mark in each of the last six markers examined. This performance makes it stand out amongst its peers.

While the Ranmore fund is currently the only one to achieve this success six times, 35 other funds managed to hit the benchmark four times. For context, the top ten funds ranked by their one-year returns offer insight into shifting market dynamics and investor preferences.

Market Influences: Understanding the Current Landscape

The substantial influence of geopolitical tensions—including the ongoing conflict in Ukraine and instability in the Middle East—has positively impacted certain asset classes, particularly gold-focused funds. Notably, these funds have often been spotlighted for their performance during turbulent times, reflective of a shift in investor sentiment favoring assets viewed as safe havens.

Changes in Sector Performance

The financial landscape has also shifted dramatically since last year. Historically, the Technology and North American funds dominated the performance charts, a trend that has seen some fluctuation this year. In 2023, the Technology & Technology Innovation sector emerged as the best performer once again, though the Financial & Financial Innovation sector experienced a robust recovery, yielding returns of 23.8%, closely trailing the tech sector.

Such fluctuations in performance reflect changing investor attitudes and economic conditions, making the presence of diverse funds, like Ranmore, increasingly significant. Fund managers are adapting strategies within the ‘Global’ category to best align with current investment trends while meeting the Investment Association’s requirements that dictate funds must invest at least 80% of their assets globally in equities, ensuring regional diversification.

Unique Characteristics of Ranmore Global Equity

The Ranmore Global Equity Fund, managed by Sean Peche since its inception in 2008, distinguishes itself with a concentrated and actively managed portfolio. The fund primarily focuses on undervalued companies, employing a disciplined, value-based investment approach that seeks out firms with strong financial fundamentals trading below their intrinsic values. By performing detailed bottom-up analyses, the manager ensures that opportunities often overlooked by others can be capitalized upon.

Sectors and Geographic Allocation

In terms of sectoral exposure, the fund’s allocation paints an interesting picture:

• Consumer Discretionary: 27%
• Financials: 22%
• Consumer Staples: 14%
• Technology: 6%

This strategic asset allocation allows the fund to mitigate risk associated with technology fluctuations, which is critical in light of the sector’s inherent volatility.

Geographically, while the fund maintains a considerable 24% exposure to the U.S., it is less U.S.-centric compared to many of its competitors. For instance, the GAM Star Disruptive Growth Fund boasts nearly 85% investment in the U.S., while several Baillie Gifford funds have over 60%. The geographical diversification of the Ranmore fund is substantial, with 30% in Europe (including 5% in the UK), 15% in Asia, 9% in Japan, and 8% in South & Central America. This balance suggests calculated risk management across diverse markets.

Volatility and Long-term Returns

Although the Ranmore fund can be prone to volatility—as is common with many actively managed portfolios—it has consistently demonstrated its capacity to deliver strong long-term returns. This quality makes it an attractive option for investors who seek global exposure without an over-reliance on the U.S. technology sector, particularly during periods of economic uncertainty.

Conclusion: A Practical Choice for Global Investors

For investors looking to diversify their portfolios and mitigate excessive risk associated with U.S. tech stocks, the Ranmore Global Equity Fund offers a compelling alternative. With a disciplined approach centered on fundamental value, this fund represents a balanced strategy suitable for investors aiming for long-term growth amidst fluctuating market conditions.

For further insights and to explore more investment opportunities, consider a two-month free trial with Saltydog Investor at www.saltydoginvestor.com.

Source: diyinvestor