Frontier

George Birch Reynardson

We launched the Somerset Frontier Markets strategy on 2nd December 2013, with a UCITS vehicle launched on 13th July 2018. There is currently around $300m of remaining capacity in the strategy. Our Frontier strategy seeks to maximise returns whilst reducing volatility by investing in quality stocks and avoiding over-bought areas of the market.

 

Key Facts

  • We focus on sustainable profitability, cash flows and balance sheets, targeting a high quality portfolio aimed at reducing volatility.
  • We are strict about not overpaying for quality; we actively avoid popular, expensive areas of the market e.g. Sub-Saharan Africa consumer.
  • We specifically look for under-researched companies, pushing us against the consensus into under-owned and better-priced equities.
  • We have capped this product very conservatively at $300m. This allows us to manage a 40-stock portfolio from a universe of over 900 companies while aiming to liquidate 90% of the portfolio within a single month.