Harvard looking for short-sellers

A couple of weeks ago, the Financial Times published an article highlighting the cautiousness Harvard’s $38 billion endowment fund was now exercising with respect to its outlook for global financial markets.

It’s perhaps little wonder. Take a look at the table below circulated by economic observer, Cullen Roche, last month. Every single major asset class has negative one year returns!Screen Shot 2015-10-13 at 10.51.49 am

In the case of Harvard, they have put the call out to investment managers with expertise in short selling. As investors in Montaka will already know, holding a well-constructed short portfolio in parallel to one’s long portfolio of investments serves two key objectives: (i) to dramatically increase the downside-protection of the overall portfolio; and (ii) to allow the investment manager of the short portfolio to add value through superior stock selection.

In the current volatile market environment, in which downside risk clearly persists, a well-constructed short portfolio is enormously valuable to investors.

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 Long Only funds strive to act as a core, high conviction, global portfolio holding. Consistent with the long portfolios in our Montaka Variable Net funds, this offering is focused on owning the world’s high quality, undervalued businesses – and cash when appropriate – to outperform its benchmark.

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

Our Montaka variable net funds strive 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 these funds are our flagship long-short.

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Our Montaka Long Only funds strive to act as a core, high conviction, global portfolio holding. Consistent with the long portfolios in our Montaka Variable Net funds, this offering is focused on owning the world’s high quality, undervalued businesses – and cash when appropriate – to outperform its benchmark.

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

Our Montaka variable net funds strive 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 these funds are our flagship long-short.