Man GLG launches pan-European equity strategy for Rory Powe

Man GLG, the discretionary investment management business of Man Group, today announces that it is to launch a pan-European UCITs fund for manager Rory Powe aimed at investors in the region.
Targeting exposure to Europe’s strongest companies, the Dublin-domiciled Man GLG Pan-European Equity Growth fund launched on 6^th December under the stewardship of lead portfolio manager Powe, assisted by analyst and deputy portfolio manager Virginia Nordback and analyst Ivan Rachev.
Powe, who currently runs the GLG Continental European Growth strategy, will use his well-established bottom-up stock picking process with the aim to create a concentrated long-only portfolio of the most attractive companies in Europe. In particular, Powe’s investment criteria seeks companies that have formidable franchises (defined as those with a high or rising market share, sustainable competitive advantages, repeatable revenues and pricing power); revenue expansion over a three-to-five year period irrespective of the macro environment; long-term P&L drivers (strong margins and scale); financial strength (particularly companies which are inherently cash generative); and attractive valuations.
The all-cap strategy, which will typically hold between 30-40 stocks selected from an initial universe of 3,000 names, will be divided into two types of company, defined as either ‘established leaders’ or ‘emerging winners’. Established leaders those that he believes are the dominant businesses in their fields with clear roadmaps for earnings and free cashflow, and a three-to-five year expansion path. It is intended that these stocks will account for between 50-100% of the portfolio.
Emerging winners are high growth companies – those Powe expects to deliver an annualised return of at least 15%^[1] – which should already demonstrate clear competitive advantages. It is expected that these will account for a maximum of 33% of the portfolio.
Commenting on the launch, Teun Johnston, CEO of Man GLG, says:
“Rory’s long and successful career investing in European companies has enabled him to hone a strategy that is both high conviction and focused on investing in Europe’s strongest companies. His fundamental research approach, which prioritises company strength, growth and product roadmaps, has generated strong interest from clients in the UK and we are delighted to now offer European investors access to the strategy through a Dublin-domiciled UCITS fund.^[2]”
[1] The target reflects the portfolio manager’s current intentions but is subject to change without notice. Targets are not guaranteed.
[2] Please note that the availability of the fund is subject to local country registrations.