Getting to know the Montaka portfolio – Part I

As part of our efforts to promote transparency in Montaka, we publish the following charts each month to give our investors insight into the geographical regions to which their capital is exposed.

The charts below illustrate the percentage of client capital that is exposed to each region in terms of where the underlying businesses are domiciled (as of month-end August 2015). As always, we think of Montaka in terms of two portfolios in parallel, so we find it helpful to illustrate the characteristics of each portfolio separately.

From the charts below, you will immediately notice an outsized share of positions in both portfolios being domiciled in the US. We were recently asked why this was the case.

Screen Shot 2015-09-25 at 11.45.10 am

To help answer this question, take a look at the following chart that was recently tweeted by well-known political scientist, Ian Bremmer. It shows the map of the world, with the size of each country scaled by domestic market capitalization.

Screen Shot 2015-09-25 at 11.46.05 am

What immediately stands out is the massive size of the US – in terms of market capitalization – versus every other country or region in the world. Given its large share of global aggregate market cap, it should perhaps not be surprising to clients that we naturally find a relatively larger number of opportunities – both long and short – in US domiciled stocks.

Screen Shot 2015-11-11 at 12.08.48 pmAndrew Macken is a Portfolio Manager with Montgomery Global Investment Management. To learn more about Montaka, please call +612 7202 0100.

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Our Montaka Active Extension strategy strives for maximised return over the long-term. Owning the Montaka long portfolio typically scaled up to approximately 130 percent - and the Montaka short portfolio typically scaled down to approximately 30 percent – this strategy results in a net market exposure of approximately 100 percent most of the time.

Our Montaka variable net strategy strives for significant downside protection – but with minimal upside reduction. Focused on owning the world’s great and growing businesses when they are undervalued, while managing a portfolio of short positions in businesses that are deteriorating, misperceived, and overvalued, this strategy is our flagship long-short

Our Montgomery Global strategy strives to act as a core, high conviction, global portfolio holding. Consistent with the long portfolios in our Montaka strategies, this offering is focused on owning the world’s high quality, undervalued businesses – and cash when appropriate – to outperform its benchmark. Branded as “Montgomery Global” in Australia to reflect a key.

Our
Strategies

Our Strategies

Our Montaka Active Extension strategy strives for maximised return over the long-term. Owning the Montaka long portfolio typically scaled up to approximately 130 percent - and the Montaka short portfolio typically scaled down to approximately 30 percent – this strategy results in a net market exposure of approximately 100 percent most of the time.

Our Montaka variable net strategy strives for significant downside protection – but with minimal upside reduction. Focused on owning the world’s great and growing businesses when they are undervalued, while managing a portfolio of short positions in businesses that are deteriorating, misperceived, and overvalued, this strategy is our flagship long-short

Our Montgomery Global strategy strives to act as a core, high conviction, global portfolio holding. Consistent with the long portfolios in our Montaka strategies, this offering is focused on owning the world’s high quality, undervalued businesses – and cash when appropriate – to outperform its benchmark. Branded as “Montgomery Global” in Australia to reflect a key.