The 2022 Raging Bull Awards and Anchor’s Global Equity Fund
We are proud and delighted to congratulate Anchor Fund Manager Nick Dennis on the Anchor Global Equity Fund winning the Raging Bull Silver Trophy for Best Financial Sector Conduct Authority (FSCA)-approved Offshore Global Equity Fund (best straight performance over three years) at the 2022 Raging Bull Awards. The event was held on 28 February 2023. Since 1997, the Raging Bull Awards have been an important annual event honouring South Africa’s (SA) leaders in the collective investment schemes (CIS) industry. The event celebrates top performers across various sectors and acknowledges investment managers as the best outright performers, risk-adjusted performers, and unit trust management companies.
According to Nick Dennis, fund manager of the Anchor Global Equity Fund, the foundation of the funds’ trailing three-year performance was built in 2020, when the environment was particularly conducive to our strategy of investing in ‘multibaggers’. These are companies (and stocks) with the potential to grow to multiples of their current size over time as their innovative products take market share in massive addressable markets. Unfortunately, the subsequent period has been more challenging, with rapidly rising inflation and interest rates acting as kryptonite for growth stocks. As a result, the fund’s composition shifted dramatically from the latter part of 2021 as we recognised that the environment had deteriorated materially. On the one hand, we are gratified that the fund’s processes and risk management prevented significantly worse damage; on the other, we are never satisfied and are constantly searching for ways to improve performance. This is an ongoing quest, which we are confident will enhance the fund’s robustness and returns prospectively.
The fund came into 2023 defensively positioned, consistent with the dominant fundamental and technical trends at the time. According to survey data and general observation, this positioning was also (unintentionally) in line with the consensus. We believe that more money is made going with the trend than fighting it, but being in the consensus at turning points can be costly. More costly still is not recognising the change in trend and adapting. Realising that the fund was exposed to this risk, we moved to reallocate capital out of defensive shares and into growth shares.
Headwinds appear to be abating, with inflation falling and peak interest rates within sight. After suffering through a brutal two-year bear market and having fallen as much as 80% from their peaks, numerous growth stocks are showing encouraging signs of life. Once-profligate growth companies are finding religion with respect to costs and should emerge leaner and meaner than ever. The fund has reinvested in former holdings like Tesla, MercadoLibre and Sea while also putting capital to work in more recent listings, such as DoorDash and Snowflake. We see this period as a window of opportunity; we do not know how long it will last, but we want to capitalise while it does.
For further information on the abovementioned fund or to invest in the fund, please contact us here.
The latest available minimum disclosure document (MDD) for the Anchor Global Equity fund as well as the MDD for the local feeder fund that feeds into it can be found here and here.
Disclaimer
A schedule of fees, charges, and maximum commissions is available on request. Investment performance is for illustrative purposes only and is calculated by taking actual initial and ongoing fees into account for the amount shown with income reinvested on the reinvestment date. Past performance is not necessarily an indication of future performance. Annualised return is the weighted average compound growth rate over the period measured. Actual annualised figures are available to the investor on request. The forecast or commentary isn’t likely to occur.
Anchor Global Equity Fund, a sub-fund of the Sanlam Universal Funds PLC (USD). The Fund is managed by Sanlam Asset Management (Ireland) Limited, which is authorised by the Central Bank of Ireland as a UCITS Management Company; and an Alternative Investment Fund Manager; and is licensed as a Financial Service Provider in terms of Section 8 of the South African FAIS Act of 2002.
Please refer to the Minimum Disclosure document for the full Disclosure Document.
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