approach to listed
Launched in response to investor demand as a product of Conviction Equities Ltd, the Conviction Equity Fund replicates the successful strategy of Middleton Enterprises, the family office of Conviction’s co-founder, Jeremy Middleton.
Invest in great businesses.
Invest at a reasonable price.
Hold for the
We take a high conviction approach, only investing in a select few global best ideas. This allows us to focus our research efforts, looking an inch wide and a mile deep.
Brett Rogers, Conviction Equities Ltd
Rare opportunities require a rare strategy.
We feel most funds own too many stocks, some choosing to buy over 200 positions. Our view is that this is an attempt to “not make a mistake” rather than aim to generate outperformance for investors.
We invest with conviction
We feel our fee structure aligns investor interests with ours, choosing a low annual management charge with a performance fee above a healthy hurdle rate. Additionally, both Conviction Founders have substantial portions of their net worth invested in this strategy.
We have aligned incentives with our investors
We instead view bouts of volatility as an opportunity to buy great businesses at reasonable prices. We decide to focus on analysing business models, competitive landscapes, balance sheets and cash flow statements of the businesses we own, to evaluate risk.
We do not view
volatility as a risk
We believe that it is difficult to call short term market movements. We prefer to invest into great businesses, with a long-term perspective and benefit from compounding growth.
We do not indulge in market timing
Source: Willis Tower Watson – Better Equities – May 2018
Number of Stocks in Portfolio
Just 2% of global equity funds hold <20 positions
Defining a Great Business
Simple, predictable businesses which provide operational transparency to investors.
Capital light businesses with low reinvestment requirements, enabling high cash generation.
High Barriers to Entry
High barriers to entry allow management long-term growth opportunities.
Limited exposure to external uncontrollable factors (interest rate moves, commodity prices etc).
Long Term Potential
A long-term investment case where we have visibility over the structural drivers
Investment Director, Conviction Equities Ltd
Fund Manager & Head of Research
Brett manages the fund’s investment strategy, and is responsible for managing our analysts, meeting with management teams and recommending trades, having worked on the strategy since inception.
© 2023 Conviction Equities Ltd.
Company No. 12294301. Registered Office: 36 Soho Square, London, W1D 3QY, United Kingdom
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