About Montaka

In the Midst of an Historic Reallocation?

Over the last 12 months we have borne witness to one of the most significant portfolio reallocations of modern times.  Investors have sold ~US$250bn of global equity funds and bought ~US$780bn of bond funds (inc money market). Looking at the difference between equity and bond flows (i.e. equity flows minus bonds flows), implies over US$1 …

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Look for Businesses That Get More Than Their Fair Share

Peter Lynch, the legendary investor, once quipped that it’s best to invest in businesses that any idiot could run, because sooner or later one will. This begs the question of what drives the economic returns of businesses: is it the competitive forces of that industry or the skill of management? It’s likely a combination of …

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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 …

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The Hidden Value of Low Correlation

We recently wrote about the reward-per-unit-of-risk ratio. Ultimately, investing is entirely concerned with generating reward-per-unit-of-risk taken. And there are two obvious ways to boost this ratio: Boost the numerator: that is, identify skilful managers who implement sound investment process with extreme discipline; and/or Reduce the denominator. But how does one reduce the denominator? Well, there …

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Welcome Daniel

This month the Montaka team welcomed a new Research Analyst by the name of Daniel Wu. Daniel is an extremely sharp financial analyst with previous experience at Goldman Sachs and UBS in their investment banking division. Daniel’s formal education was completed at the University of Sydney from which Daniel graduated with a Bachelor of Commerce …

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What makes a great short? (Part III)

The third (of four) characteristic that we think makes an attractive short is called Asymmetries. (For a review of the first characteristic, Thematics / Structural Declines, click here; and the second, Divergent Expectations, here). Asymmetries are specific drivers of asymmetric risks that can result in a stock price collapsing rapidly over a short period of …

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Our Montaka Global Long Only 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.

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
Strategies

Our Strategies

Our Montaka Global Long Only 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.

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