FAM Millennium Equity Fund

FME invests opportunistically across global equity markets, focusing on out-of-favour, underappreciated markets with meaningful upside potential and a margin of safety.

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    2. Finding Underappreciated Market Opportunities

    The more crowded an investment, the harder it is to make meaningful gains. To get above-average returns, we need to know where returns come from and get there before the majority. The chart shows that over the past 100 years, most investment returns have come from fundamental and valuation factors. By focusing on them, investors can find underappreciated opportunities to reap the full range of returns without being distracted by daily noise.
    Drivers of S&P 500 Returns

    S&P500 = P/E ‘valuation’, Earning Growth + Dividend

    • P/E Change
    • Earnings Growth
    • Dividends
    Periods of higher returns driven by
    strong fundamentals and valuation
    Periods that lower returns muted by weaker
    valuation despite strong fundamentals
    Fmeen Mob
    Source: Finexis Asset Management, using data from Don’t Count On it (2010). Past performance is no guarantee of future results.

    Underappreciated opportunities present themselves in periods of P/E contraction (e.g. 1910, 1940, and 1970) where market sentiments and valuations are weaker. However, such opportunities are better coupled with strong fundamentals as they have historically proven to provide stable and sizeable returns. Combined, they deliver periods of higher returns (e.g. 1950, 1980, and 1990).

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    3. Artisan Managers To Be Different And To Be Right For Maximum Impact

    Artisans combine aptitude, practice, and experience to become masters of their craft. When it comes to investments, there are low-profile artisans who focus on performance rather than promoting themselves. By assembling them in our portfolios, we are able to find opportunities that passive investors have yet to discover.
    Fme Chart1
    Quick Decision-Making
    No Herd Mentality
    Maintain Nimbleness
    Focus on Performance
    Fme Mob2