Being caught up in a constant thrum of market activity might be advantageous for some investment teams, Desmond explained, but isn’t necessarily for those with a high conviction style.
The prospect of riding the giddying, volatile rocket ship of tech stocks like Nvidia holds little interest for high conviction teams who back their proven investment strategies.
Meeting the myriad metrics for investment set down by Claremont Global is just the start of a selection process that sees no more than 15 companies held at any one time. It turns out that owning the world’s best businesses takes patience and a whole lot of precision.
Most managed funds simply hold too many stocks to provide reliably effective returns for investors, according to Claremont Global head Bob Desmond, who says a quality, high-conviction strategy makes diversification less crucial.
Focussing on a concentrated portfolio of quality and growing stocks can expose investors to strong profit growth and some of the best companies in the world, Claremont Global’s Bob Desmond said at the Inside Network’s recent Investment Leaders Forum. It just requires thinking through the noise and understanding a company’s culture.
