Alexander Darwall’s newest venture Devon Equity Management has joined the Group of Boutique Asset Managers in a bid to enhance its presence in international markets.
GBAM bills itself as a “global network of like-minded, senior executives of independent management firms who have come together to improve their presence in international marketplaces and to promote the value of boutique asset management to the wider market”.
Established in Valladolid, Spain, its chief aims are to foster cooperation among member firms, identify best practice and shared experience in research, portfolio management, risk control and marketing and improve understanding of operating in international markets.
Darwall (pictured) stepped out to launch his own boutique in 2019, after nearly 25 years at Jupiter, recruiting former colleagues Richard Pavry and Luca Emo.
Pavry, who is Devon’s chief executive, said joining GBAM would help the boutique as it continues to grow.
“GBAM and its members share our values,” Pavry said. “The new perspectives we will gain through being an active participant in the GBAM community will be most helpful in the development of our business.”
Darwall boutique launches Sicav strategy
The move comes as London-based Devon looks to expand its investor base to Europe.
Though Darwall’s outfit started out with just the £819.4m European Opportunities investment trust in its stable, it has begun adding to its product range, recently launching a Luxembourg Sicav.
See also: Jupiter loses European Opportunities mandate as board follows Darwall
The Sicav comprises two sub-funds – a European equities strategy “run along similar lines” to Darwall’s trust and a long-only global equities strategy created for senior fund manager Charlie Southern who joined from Indus Capital in March 2020.
GBAM chairman and CEO of Skagen Funds Tim Warrington added that the Devon investment team’s “impressive long-term investment record” and insights would be a boon for the group’s broader understanding of international markets, particularly in Europe.
Devon invests in a limited number of “special” companies that are identified to have above average returns and margins “they can sustain for longer than the market expects,” favouring those that benefit from long-term structural trends like changing consumer habits, technology and regulation.
The team will only invest in companies that have “a strong, open and accountable management team whose interests are aligned with shareholders as far as is possible”.
Darwall was caught out last year with his chunky bet on Wirecard after the payments business became embroiled in an accounting scandal, which saw his European Opportunities trust fall 11% in a single day.
The trust has struggled over the past year, returning just 1.9%, landing it in the bottom quartile of the IT Europe sector. Since taking the reins of the European Opportunities trust in November 2000, Darwall has outperformed rivals, returning 786.2% versus the average 471.1%.
See also: Alexander Darwall bins another top holding following short attack
