Get ready to dive into the world of bargain shares, both in the UK and beyond! In this exclusive interview, we're chatting with Sean Peche, the manager of the Ranmore Global Equity Fund. Sean, with his unique perspective and approach, is here to share his insights on value investing and portfolio management.
The Value Investor's Journey
Sean and his team at Ranmore Global Equity are all about seeking undervalued companies worldwide. They believe in buying good businesses at sensible prices, focusing on the long-term potential rather than short-term benchmarks. It's a refreshing take on investing, especially in a world where many investors are obsessed with tracking errors and relative performance.
A Different Approach to Portfolio Management
One of the most intriguing aspects of Sean's strategy is his view on portfolio turnover. Unlike many investors who aim for low turnover, Sean actively seeks high turnover. He argues that it allows them to correct mistakes and sell stocks when they reach fair value, redeploying those assets into new opportunities. It's a bold approach, and Sean believes it's key to their success.
The Greggs Story: A Value Proposition
Sean shares an interesting recent buy - Greggs, a well-known UK bakery chain. Despite a challenging year, with sales impacted by the summer heat and a slowdown in growth, Sean sees enormous potential in Greggs' growth trajectory. With a compelling value proposition, an attractive dividend yield, and a presence in various locations, Greggs offers an exciting opportunity for value investors.
Selling European Banks: A Lesson in Timing
Sean also discusses a recent sell - their European banks position. While they sold a bit early, he believes it's better to be early than late. It's a lesson in timing and the importance of recognizing when to exit a position. Sean compares it to squeezing a lemon - you want the juice, not the pips!
High Turnover, High Conviction?
Sean's high turnover strategy is a contrast to the high-conviction approach of some investors. He believes that high conviction can lead to biases and a lack of flexibility. By spreading their bets across 50 stocks, each with a 2% position, they aim to mitigate the impact of any one stock's performance. It's a balanced approach, recognizing the unpredictability of the future.
The Fund's Rapid Growth and Its Impact
The Ranmore Global Equity Fund has seen massive growth this year, approaching $1.9 billion. Sean discusses how this growth affects their investment process, especially given their focus on small and mid-cap shares. He believes their size hasn't held them back and that their value-oriented approach allows them to buy deeper into dips and sell higher into rallies.
Skin in the Game: Sean's Commitment
Lastly, Sean shares his personal commitment to the fund. He has all his money invested in the fund, with no personal trading. His family and friends are also invested, and he believes in charging them the same fees as any other client. It's a true testament to his belief in the fund's strategy and his alignment with his investors.
So, there you have it! A unique perspective on value investing, portfolio management, and the power of undervalued shares. What do you think of Sean's approach? Do you agree with his strategies? Feel free to share your thoughts and opinions in the comments below! We'd love to hear from you and spark a discussion on these intriguing investment topics.
