JOHCM Global Opportunities
JOHCM Global Opportunities can invest in any company around the globe, but has a strong bias towards larger and medium-sized multi-national businesses whose revenues are generated from all over the world. It is highly active and unconstrained and its manager always has an eye on capital preservation. As a result, he is very willing to hold high levels of cash if valuations are unattractive.
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Ben joined J O Hambro in 2006 and is the Senior Fund Manager of the J O Hambro Global Opportunities strategy, which he launched in 2012. Prior to this, he was a financial analyst in Schroders’ Pan-European Equity Research Department. Ben is a CFA Charterholder and holds an MA (Hons) in History from the University of Cambridge. In 2015, he was recognized as one of the ‘40 Under 40 Rising Stars of Asset Management’ by Financial News.
Robert supports Ben Leyland, the Senior Fund Manager of the J O Hambro Global Opportunities strategy. Before joining J O Hambro, he was an Equity Analyst at Orbis Investment Advisory, where he focused on sectors such as retail, media, technology, oil & gas, and insurance. Robert also has experience teaching Maths and Physics at Wellington College. He holds a BEng and MEng from Cambridge University and is a CFA Charterholder.
Ben joined J O Hambro in 2006 and is the Senior Fund Manager of the J O Hambro Global Opportunities strategy, which he launched in 2012. Prior to this, he was a financial analyst in Schroders’ Pan-European Equity Research Department. Ben is a CFA Charterholder and holds an MA (Hons) in History from the University of Cambridge. In 2015, he was recognized as one of the ‘40 Under 40 Rising Stars of Asset Management’ by Financial News.
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Company Description
JO Hambro Capital Management (JOHCM) was established in 2001. It prides itself on removing bureaucracy and taking an entrepreneurial approach. Funds are run as separate entities and there are no house views. Each fund manager has their own unique franchise, receiving a performance fee, which aligns them with investors. The group was awarded the Elite Equities Provider rating in both 2015 and 2017.
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Quote from the Fund Manager
We harness the upside potential of owning shares in great businesses, but we do it without taking on inappropriate risks. Heads we win, tails we don’t lose too much.
Ben Leyland
Co-Manager
Investment process
The philosophy of this fund is 'heads we win, tails we don't lose too much'. As a result, capital preservation runs through the heart of the process. The managers begin by screening out companies with the biggest causes of capital destruction; weak franchises, over-geared balance sheets and over-valued assets.
They then focus their research on high-quality, high return-on-capital businesses. Companies are valued on a best and worst-case scenario. The managers particularly like opportunities where downside risk is low relative to the potential upside.
Risk
JOHCM Global Opportunities is well diversified by country and sector and holds around 30 to 40 stocks. Its capital preservation mindset and emphasis on quality has historically helped it to keep up with the pack in rising markets and outperform in a falling market. The managers are also very willing to hold high levels of cash (up to 20%) and have done so on several occasions since the fund was launched. This helps reduce volatility and gives them ammunition to take advantage of opportunities created by falls in the market.
ESG
ESG - Limited
JO Hambro uses a range of sources to help its fund managers make informed judgements when it comes to their investment decisions. For ESG analysis this includes multiple different external inputs. The managers have access to this ESG analysis and can incorporate it into his stock selection and portfolio construction process. The governance factor is often the most in focus, as it has the greatest alignment with the quality characteristics Ben and Robert are looking for. The managers can use the analysis to decide whether they think the ESG risks are material to the firm. This judgement of materiality, and the focus on valuation, does not rule out any industry, meaning that all options can be invested in so long as they meet the valuation and quality metrics. The overall portfolio is likely to have above average ESG scores but may contain names some sustainably-focused investors may deem unpalatable.
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