The fund will be managed by Tom Wildgoose, NAM UK’s head of equity investment, co-managed by Ilan Chaitowitz, and supported by a team of 18 investment professionals.
The highly concentrated, Dublin-domiciled UCITS fund will focus on individual stock selection and the purchase of a number of high quality businesses trading below intrinsic value.
“…we are seeking companies that offer quality at a discounted valuation. Behavioural biases often cause stock prices to deviate from intrinsic values”, said Tom Wildgoose, head of equity investment.
“The fund’s investment process is designed to mitigate these biases through rigorous analysis and peer review. The concentrated portfolio is based on our insight that best ideas tend to contribute more to performance and high conviction ideas can actually be diluted by other holdings in more diversified mandates,” he continued.
The team will actively manage the risk of unintended exposures and stock correlations of the concentrated portfolio, containing 17-25 stocks.
Access to top-down risk analytics and bottom-up asset selection ideas enables the managers to make investment decisions driven by individual company analysis while avoiding macro-economic, portfolio aggregate exposures, according to Nomura.
Andreas Koerner, head of marketing and client relations, EMEA, said: “Our Global High Conviction Fund offers investors the opportunity to invest in an actively managed fund that aims to generate a higher excess return compared to less concentrated portfolios whilst preserving the benefits of diversification.”
Nomura Funds Ireland Plc. currently has over $6bn of assets under management.