Munro identifies sustainable growth trends that are under-appreciated, not well understood and mis-priced by the market, and in our view, the resulting winning and losing stocks.
Companies that consistently earn more than the year before are generally rewarded with higher stock prices over time.
Consistent growth, independent of cyclical factors and above the peer group, is valued at higher multiples.
Consensus earnings estimates often underestimate growth, its sustainability and cash generation capacity, allowing opportunities to invest in stocks well below their intrinsic value.
Munro runs a long/short absolute return mandate: the Munro Global Growth Fund, Index-unaware, aiming for meaningful absolute returns through the investment cycle, whilst maintaining a capital preservation mindset. Munro’s flexible investment mandate allows us to dynamically manage market and currency exposure with the objective to protect clients’ capital and enhance the long term returns of our investments.
Munro runs the long-only relative return mandate: the Munro Concentrated Global Growth Fund.It focuses on building a long-only portfolio of 20 to 40 growth equities that will benefit from structural changes through a disciplined investment process that provides access to a fully invested portfolio outside of Australia.
The investment process generates a high hit rate of performing ideas and allows them to be appropriately sized and monetised over long time periods. Concentration on stock and sector is important, whilst risk management and rigorously eliminating underperforming positions is crucial in generating strong returns and outperformance over multiple market cycles.
Munro runs a comprehensive and disciplined investment process that seeks earnings upside/downside visibility, valuation multiple upside/downside and catalyst visibility. In addition, the portfolio is managed within clear risk parameters and a disciplined drawdown management framework.
We believe strongly that investing is a process of covering the globe and continuously meeting with management teams. Our partners have built a strong 15 year performance track record on the back of averaging 500 company meetings a year, building a focused 1,000 stock universe, and owning a global network of over 3,000 key contacts.
Munro Partners is a signatory to the United Nations-supported Principle for Responsible Investment (“PRI"), the world’s leading proponent of responsible investment.
Munro recognises and is committed to consider ESG in the course of its investment process and in the monitoring of portfolio investments. Where our investment process identifies that minimum standards are not being met by a company, we may look to engage with the company to improve ESG levels, avoid investment or simply divest.
Munro incorporates a company specific ESG risk rating with a numerical score that is calculated and categorised as either negligible, low, medium, high or severe. This ESG risk rating is then incorporated into the Investment team’s assessment and calculation of the control qualitative test, alongside sustainability and customer perception, to determine whether the company’s ESG rating will materially reduce the company’s quality score. ESG issues are incorporate and discussed as part of company research.
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