Solutions

Direct Equity

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Seeking the extraordinary

With Kevin Arenson's strong background in public equities, and an increasing appetite from clients with bespoke portfolios, our global direct equity strategy was born in 2012.

The Fund seeks to outperform the benchmark and peers across various business cycles by investing long term in leading publicly-listed businesses globally. We implement a fundamental, research-driven approach to stock selection, underpinned by the core tenets of our investment framework.

Our investment philosophy

We employ an active, high-conviction and concentrated approach to investing that is differentiated through a portfolio of 20-25 extraordinary businesses.

We identify and then exclusively concentrate investors’ capital in what we believe are ‘extraordinary’ businesses

We hold these businesses with a long duration approach, until the fundamentals dictate our prospective return and not short-term sentiment

We look for business predictability as competitive advantages must be sustained or expanded

Data correct as of
31 December 2024

Stenham Equity UCITS

The Fund invests in what we believe are extraordinary businesses that exhibit some or all of the following characteristics:

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    Multiple and defensible competitive advantages
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    Operate in secularly growing industries at the right side of change
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    Strong management teams who are incentivised with increasing long-term value per share

Key Facts

Fund launch date
14 Nov 2013
Strategy AuM
USD 216.0 million
Structure
UCITS
Base Currency
US Dollar
Administrator
Northern Trust Intl Fund Admin Serv (Ireland) Ltd
Custodian
Northern Trust Fiduciary Serv (Ireland) Ltd
Dealing
Daily at 2:30pm (IST)
Portfolio Managers
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Kevin Arenson
33 Years Experience
27 Years at Stenham
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Kevin Arenson

Co-Chief Investment Officer

33 Years Experience
27 Years at Stenham

Kevin is Chairman of the Investment Advisory Committee and a member of the Executive Advisory Committee, with responsibility for the complete oversight of research and investment processes across the full spectrum of Stenham Funds and bespoke portfolios. During his tenure, Kevin has launched numerous funds across a range of strategies and has been instrumental in broadening the scope of investors from high net worth individuals to a variety of institutional clients. In 2020, he was the proud recipient of the HFR Lifetime Achievement (FoHF) award. Prior to joining Stenham in 1997, Kevin was responsible for the management of a private client investment division at Old Mutual International for 3 years. And before that, he served as Senior Portfolio Manager at Liberty Asset Management, with a focus on pension fund investments. Kevin is a CFA® charterholder and completed the Investment Management Certificate. In addition, he qualified as a Chartered Accountant with PKF Chartered Accountants in Johannesburg and obtained his B.Com and B.Acc from the University of the Witwatersrand, Johannesburg.

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Mihir Kara
8 Years Experience
6 Years at Stenham
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Mihir Kara

Co-Portfolio Manager - Direct Equity Strategy

8 Years Experience
6 Years at Stenham

Mihir joined Stenham in 2018 and serves as Co-Portfolio Manager for the Direct Equity strategy, with responsibility for identifying investment opportunities and oversight of the decision-making process. His primary research coverage includes digital infrastructure, internet, payments, semiconductor and software businesses globally. Prior to this, Mihir was an equity analyst at Arrowgrass Capital, where he covered fundamental research for equity long/short strategies across industrials and the technology, media & telecoms (TMT) sectors. Mihir received an MSc (Distinction Honours) in Finance from Warwick University and a BSc (Hons) in Investment and Financial Risk Management from Cass Business School in London.

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Performance Since Inception

    Stenham Equity Long Only Strategy inception date 13 Apr 2012. Stenham Equity UCITS (A) inception date 14 Nov 2013. Stenham Equity UCITS (A1) reactivation date 18 Nov 2020. Returns are presented net of fees. Past performance does not predict future returns.

    Fundamental Characteristics

    Fund Index 1 Delta
    Number of Holdings 20 ~1,500 --
    Portfolio Turnover 29% -- --
    EBITDA Margin 37% 19% 2.0x
    Return on Equity 28% 14% 2.0x
    3-Yr Forward Sales CAGR 10% 4% 2.5x
    3-Yr Forward Free Cashflow CAGR 13% 10% 1.4x
    3-Yr Forward PEG Ratio 1.3x 1.8x 0.7x
    1 Index refers to the iShares MSCI World UCITS ETF

    Awards & Ratings

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    Accolade
    Top Performer by Allocator
    Industry body
    Investors Choice Awards
    Year
    2020

    Portfolio Breakdown

    Top 5 holdings
    Airbus
    Canadian Pacific Kansas City
    Mastercard
    Microsoft
    Thermo Fisher Scientific
    Core Themes
    Aerospace & Travel
    15.2%
    Payments
    13.7%
    Cloud & Software
    11.4%
    Life Sciences Equipment
    10.7%
    Railroads
    9.5%
    Luxury
    7.1%
    Semiconductors
    6.2%
    Content
    4.7%
    Towers
    4.1%
    Geography
    United States
    56.0%
    France
    16.4%
    Canada
    10.7%
    Netherlands
    10.6%
    Spain
    4.1%

    Pricing

    Class A - Professional Investors NAV MTD Perf YTD Perf
    USD 278.8887 -0.5% 10.0%
    EUR 113.2884 -0.6% 8.0%
    GBP 110.1903 -0.4% 9.4%
    Class A1 - Institutional Investors NAV MTD Perf YTD Perf
    USD 118.0835 -0.5% 10.3%

    Share Classes

    Class A - Professional Investors Inception ISIN Ticker
    USD 14 Nov 2013 IE00BF8HCY56 STEEQUA ID
    EUR 04 Aug 2020 IE00BF8HD087 STEEQAE ID
    GBP 16 Nov 2020 IE00BF8HCZ63 STEEQAG ID
    Class A1 - Institutional Investors Inception ISIN Ticker
    USD 18 Nov 2020 IE00BYNZ0L02 STEEQA1 ID
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    Learn more

    Stenham Equity UCITS Fund Literature