Latitude Horizon Fund
THE OBJECTIVE OF THE LATITUDE HORIZON FUND IS TO DELIVER CAPITAL APPRECIATION OVER THE LONG TERM BY HOLDING A CONCENTRATED PORTFOLIO OF STOCKS, WHILST LOWERING THE EQUITY RISK THROUGH A SELECTION OF NON-EQUITY INVESTMENTS.
Howard Marks said “When there’s nothing clever to do, the mistake lies in trying to be clever”. Being too clever has led to an annus horribilis for many politicians this year, and investors have not been immune. This situation will endure for at least as long as volatility and uncertainty remain elevated, which is very much our prediction.
Markets are increasingly fragile, fickle and, ultimately, quite false these days. Headlines often neatly justify recent events, however, there is actually far more noise than signal. Stanley Druckenmiller has elegantly described it as “algos taking the rhythm out of the market”; we agree that investors need to dance to a different, longer term, beat. The sharp swings in prices and expectations are certainly due, in part, to the algos, but also an increasingly high level of uncertainty amongst fundamental investors. Extrapolating increasingly marginal data points results in ever-sharper swings in sentiment and positioning, which is likely to continue into next year and beyond.
As we said at launch in our fund philosophy report: “We live in a world of low returns and high volatility, and we need to plan accordingly.” This heightened level of volatility suits our diversified investment approach, with capital preservation a key focus for us alongside generating strong returns after inflation. We are pleased to have delivered on this objective in difficult markets.
In the near term, our focus remains drawn by the Fed’s monetary policy (and a likely softening of stance) and the incoming Brexit vote(s). We believe the portfolio is positioned in such a way that the outcome of either will not drive performance too drastically, allowing the businesses we own to continue to shine through.
We all wish you a very happy Christmas and look forward to continuing to work with you in 2019 and beyond
|Fund Launch Date||1st November 2016|
|Legal Structure||Irish Domiciled UCITS V Fund - ICAV|
|Regulator||Central Bank of Ireland|
|Regional Exposure||Global, primarily developed markets|
|Benchmark||The fund is not benchmarked|
|Share Classes||£ - A/I IE00BDC7CZ89 / IE00BD37NY30|
|$ - A/I IE00BD37NZ47 / IE00BDC7JY67|
|€ - A/I IE00BDC7CX65 / IE00BDC7CW58|
|Management Fee||1% per annum|
|Administrator||SEI Investments – Global Fund Services|
|Custodian||SEI Investments Trustee and Custodial Services (Ireland)|
|Firm Compliance||Optima Partners|
|Contact Details||Alex Robins - firstname.lastname@example.org 12-13 St James’s Place, London, SW1A 1NP +44 (0) 207 087 9275|