Continental European
Overview
Paul Wild manages this long-established strategy with a pragmatic investment process that combines top-down economic and sector views with bottom-up stock picking. The strategy’s core style and risk profile has enabled it to outperform in both up and down markets.
Investment Team
Paul Wild (Senior Fund Manager) is the key decision maker for the JOHCM Continental European strategy. He is supported by a dedicated Analyst, Justin MacGregor, who joined Paul in August 2021. The 30+ investment professionals at JOHCM represent a further source of ideas.
Investment Philosophy & Process
The strategy has a core style and is actively managed, targeting strong but consistent outperformance.
- Paul Wild has a pragmatic approach to investing, seeking opportunities in both growth and value sectors
- His investment edge centres on the ability to interpret information that can be overlooked by the market
- Paul uses a blend of top-down views and bottom-up stock selection to add value. From a top-down perspective, he focus on sector and industry allocations as well as themes, market cap and beta exposure
- Paul then decides which individual companies fit within that view. In the past, Paul has generated alpha at market turning points when pure bottom-up strategies have not performed well.
Portfolio Construction
- Typically 60-70 holdings
- Maximum active stock position of 3.5% (relative to the benchmark)
- Minimum 65% of the portfolio invested in large cap equities
- No investment in stocks with a market capitalisation less than €250 million
- Risk diversification is ensured by controls on sector exposure which ensure that the Fund will always be exposed to every major sector
- Major sector exposure up to 75% over/underweighting (relative to benchmark) and up to 100% overweight for minor sectors (<6% of benchmark)
- No country constraints
- No tracking error targets or constraints. The historic tracking error range is 3-6%
- No use of derivatives
- Aim to be fully invested and do not take tactical cash positions
