Month: February 2020

TAM: Linear Thinking in a Non-Linear World

Traditional measures of TAM can be directionally misleading, not only in the early years of a true disruption, but at practically any point along the path. As disruptive technologies / businesses tend to consume adjacent markets, make others obsolete and create entirely new ones along their journey, it is incredible difficult to determine what is reasonable and what is not when assessing TAM.

The inequality of low interest rates

As global interest rates continue their march towards the floor, we continue to see asset prices inflate. But interest rates do not treat all humans equally. The benefits of compounding asset values accrue largely to the few who are already wealthy. In a lower-for-longer interest rate environment, this dynamic will only accelerate.

Obsessing over margins

Today’s world is characterised by fast-money investors looking for high-growth and high-margin businesses, such that businesses or industries with lower margins are considered “boring” or are frowned upon. But are low margins a dealbreaker on their own?

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.

Our
Funds

Our Funds

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.