Getting to know the Montaka portfolio – Part I

Getting your Trinity Audio player ready...

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.

Disclaimer :

This document was prepared by Montaka Global Pty Ltd (ACN 604 878 533, AFSL: 516 942). The information provided is general in nature and does not take into account your investment objectives, financial situation or particular needs. You should read the offer document and consider your own investment objectives, financial situation and particular needs before acting upon this information. All investments contain risk and may lose value. Consider seeking advice from a licensed financial advisor. Past performance is not a reliable indicator of future performance.

Related Insight

Share

Get insights delivered to your inbox including articles, podcasts and videos from the global equities world.