LC Global Select SP Fund
about LC Global Select SP Fund
An efficient way to be at the heart of our investment philosophy and portfolio rigor. LC Global Select seeks to generate absolute returns by allocating capital to predominantly managers with proven track-records in delivering high risk-adjusted returns.
Significant Outperformance YTD Performance
- MSCI All Country World Index as proxy for Global Equities
- Bloomberg Global Aggregate USD Hedged Index as proxy for Global Investment Grade Bonds
- Bloomberg Global High Yield USD Hedged Index as proxy for Global High Yield Bonds
- NASDAQ 100 Index as proxy for US Tech
Minimising correlations for downside protection
A long only approach is not efficient, high volatility of equity markets creates large drawdown risks and long recoveries. Equities and bonds have also become highly correlated in recent times, and the traditional 60/40 portfolio allocation creates a false sense of diversification. Through actively managed strategies, we focus on minimising correlations and dynamically allocating to strategies that exhibit strong resilience with fast recovery during down markets, providing better downside protection during market stress.
NOTE:
- Data is based on the simulated fund structure performance of the LC Global Select – GrowthClass from Jan 2015 to Oct 2020. Performance thereafter is live.
- MSCI All Country World Index as proxy for Global Equities
- Bloomberg Global Aggregate USD Hedged Index as proxy for Global IG (Investment Grade Bonds)
- Correlation matrix is based on actively managed strategies in our investable universe
Why this fund
Competitive risk-adjusted returns with better downside management.
Access to scarce capacity of high conviction managers.
Immediate diversification through an optimized mix of strategies across multiple asset classes. Low correlation to broader equity markets or traditional investment portfolio.
A single subscription gets you access to several funds without having to go through the hassle of investing in multiple funds and facing high minimum investment hurdles.
Experienced investment team with strong culture of risk management. Regular portfolio monitoring and stress tests to manage unwanted risks.
The Rationale for Global Diversification
Domestic equities and bonds tend to be more exposed to the narrower economic and market forces of their home market while global assets tend to offer exposure to a wider array of economic and market forces. This reduces the concentration of risk in one country (do not put all your eggs in the same basket).
Moreover, most of the promising companies (high growth and/or high profitability) will aim at listing on large exchanges to secure capital access (New York, London, Hong Kong, Singapore). As an illustration approximately half of the world market capitalization is listed on US exchanges (whereas the US GDP represents 14% of the world GDP). To get access to such companies, investors have to diversify their investments across sectors and geographies, away from their domestic assets.
Lastly, a lot of the strategies such as trade finance, macro, commodities, insurance and long/short managers, are simply not available outside large financial hubs. These strategies are bringing a lot of value and should be part of any well-designed portfolio.
