MAB Quarterly Review Q1 2025 - Cautious - Flipbook - Page 13
Facts behind the fund
The core philosophy of this Fund is to run an eclectic and diversi昀椀ed mixture of investment ideas formulated
as baskets of thematic equities. For example, due to the weight loss revolution which GLP1 drugs have
unleashed, Fawaz discerned the opportunity to go “long” grocery stores (meaning they would bene昀椀t from
the share price going up) and go “short” junk food companies (meaning they would bene昀椀t from the share
price going down). This trade was a second order consequence of the proliferation of these drugs, whereby
users would consume less junk food, which would actually bene昀椀t grocery companies who make higher pro昀椀t
margins on items such as fresh meat and vegetables.
Fawaz and the team will typically implement between 20-30 of these types of ideas at any one time, always
as diversi昀椀ed baskets describing a particular theme such that stock-speci昀椀c risk is minimised. Themes are
very
at identifying
“short”
investment
ideas,technological,
and argues that
this is due tosocial,
their ability
to
focused on
thegood
impact
of long-term
trends
(economic,
demographic,
regulatory
identify
structural
trends
that
are
either
tailwinds
or
headwinds
for
companies
and
to
profit
and consumer-related). The critical element being the understanding of the second and third order
accordingly.
implications
of these themes. Fawaz has been very good at identifying “short” investment ideas and argues
that this is due to their ability to identify structural trends that are either tailwinds or headwinds for companies
What
we really like about this Fund is its capacity to adapt to new and evolving market
and to pro昀椀t
accordingly.
environments, which has been particularly relevant given the volatile periods which have been
a reality
One
the to
improvements
we have
engaged
with Fawaz
What we really
like since
about the
thiscovid
Fund pandemic.
is its capacity
to of
adapt
new and evolving
market
environments,
which
on down the
yearsgiven
has the
been
the implementation
of abeen
“factor
hedging”
which
has
has been particularly
relevant
volatile
periods which have
a reality
since overlay
the COVID
pandemic.
its crustwe
byhave
helping
them with
dealFawaz
with markets
rapidly (for of
One of theearned
improvements
engaged
on down whereby
the yearswinners
has beencan
theshift
implementation
example
from
high
quality
companies
which
the
fund
focuses
onto
low
quality
companies
a “factor hedging” overlay, which has earned its crust by helping them deal with markets whereby
winners
and
back
again).
can shift rapidly (for example, from high-quality companies - which the fund focuses on- to low-quality
companies and back again).
The resulting portfolio results in a highly liquid strategy which has been a great diversifier in
yourportfolio
portfolioresults
while generating
returns
which are
meaningfully
interest
rates.
The
The resulting
in a highly liquid
strategy,
which
has been aabove
great cash
diversi昀椀er
in your
portfolio
Fund
sits
within
our
Absolute
Return
active
manager
blend
alongside
three
other
totally
while generating returns which are meaningfully above cash interest rates. The Fund sits within our
different
managers
and
in recent
yearsthree
this diversified
blend
has done
a great
jobingenerating
Absolute Return
active
manager
blend
alongside
other totally
different
managers,
and
recent years,
returns
which
are
totally
unrelated
to
other
parts
of
your
portfolio.
this diversi昀椀ed blend has done a great job generating returns which are totally unrelated to other parts of
your portfolio.
Since inception chart vs benchmark is below. As you can see, an investment in the Fulcrum
TEMNchart
Fundvshas
strongly exceeded the returns from being in Cash (as denoted by the SONIA
Since inception
benchmark:
benchmark).
60%
Com
Fulcrum Thematic Equity Market Neutral Fund:
Performance Since Inception
Fulcrum TEMN
55%
50%
40%
30%
20%
SONIA 17%
10%
0%
02/2018
08/2019
02/2021
08/2022
02/2024
08/2025
Source: Refinitiv Datastream, YOU AM Analysis
Pg 12
