The Luxembourg-based Oyster US Selection Sicav will combine top-down and bottom-up approaches “to anticipate changes in economic cycles”, is currently awaiting registration across Europe and Asia. It will be Ucits compliant.
The fund’s manager will be Patrick Dunkerley and he will run it on behalf of institutional investors with a minimum investment of £100,000, $100,000 or €100,000.
Scout Investments, will run the fund in line with its existing US strategy, aiming for superior long-term, risk-adjusted returns by investing in attractively valued quality stocks expected to benefit from company-specific or macroeconomic catalysts.
The firm identifies market cycles and investment themes, as well as risks attached to sectors and industries to determine any allocation. Its bottom-up view includes a company’s ability to generate consistent free cash flow, a ten-year record of strong or improving operating margin, long-term earnings power, a strong management and the absence of litigation risk.
The combination of these two approaches will end up with Dunkerley holding between 60 and 80 stocks in the fund.
“We believe that the US economy is in recovery phase and is also more mature and less volatile than other markets. The US market offers strong opportunities to find undervalued companies with positive dynamics”, comments Xavier Guillon, chief executive officer at Oyster Funds.