206. We’re now operating in a financial world we’ve not seen for decades

JOHCM Global Opportunities manager Ben Leyland explains why markets have been abnormal since the Global Financial Crisis in 2008 and why investors are now facing a financial environment that we’ve not seen for decades. Ben also talks us through how the team runs money in transitory periods like these and the benefits of their balanced approach to investing. He also highlights some of the overlooked investment opportunities in the market and the role of cash in the portfolio. We also discuss Ben’s preferred investments in the tech space and why the fund has been adding to names like Adobe and Microsoft in recent months.
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JOHCM Global Opportunities fund is managed by Ben Leyland and Robert Lancastle and has a strong focus on capital preservation. The philosophy of this fund is ‘heads we win, tails we don’t lose too much’, with the managers’ focusing their research on high quality, high return on capital businesses. The fund is well diversified by country and sector and holds around 30 to 40 stocks. The team are also willing to hold up to 20 per cent in cash as it helps to reduce volatility and gives them ammunition to take advantage of opportunities created by falls in the market.

What’s covered in this episode:

  • Why investors must prepare themselves for a new financial world that we’ve not seen for decades
  • Sticking to their investment principles but being flexible in their application.
  • How they are finding growth in the likes of utilities, healthcare and financials.
  • Tapping into unloved European companies and why they particularly like companies in the energy and defence sectors.
  • Finding opportunities in the “forgotten middle” – companies outside the technology sector which have been overlooked by the extremes seen in the past two years.
  • The team’s preference for software companies in the tech space and adding names like Adobe and Microsoft based on market weakness.
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