Goodbye 2017

Investing legend, Seth Klarman, recently wrote that: “When the market reverses, dormant advantages conferred by analytical edge, discipline, thoughtful hedging, a sourcing network, team building and process improvement are restored.”

We have no idea if or when the market will reverse, but we continue to work hard to strengthen these “dormant advantages” to which Klarman refers.

Recently, the Montaka team ventured up into the Blue Mountains, west of Sydney. In addition to some hiking in the stunning terrain, we spent significant time reviewing, analysing and enhancing the Montaka research and investment process.

We are proud of the results Montaka has delivered investors in 2017, but we are never satisfied. We believe there will always be minor enhancements in techniques and time-efficiency gains that can be captured.

For all of us at Montaka, it is not about being right. It is about always seeking out the right answer. It is this “growth mindset” that drives us each day to uncover new insights and to pressure-test existing ones.

We do not know what the future holds for equity markets so we prepare for all circumstances. We believe our rigorous investment process, when applied with discipline by all members of the team, is the best form of defence against any conditions the market may throw at us.

We will take a short break from this blog for the next couple of weeks. We wish all of our investors and readers a safe and happy holiday period. And we look forward to our partnership only strengthening in 2018 and beyond.

Andrew Macken is Chief Investment Officer with Montaka Global Investments. 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.