Claremont Global

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.

By avoiding market forecasts and not making prognostications based on macroeconomic conditions or political changes, the Claremont team is able to focus on something much more predictably profitable – its own proven process.

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.

You don’t need to be a tech stock advocate to understand the importance of looking beyond the headlines and the hype, creating your own narrative based on facts, and assessing each opportunity with a clear lens.

With over 2 million Australians invested in ETFs and every second SMSF holding them, it’s little wonder managers are keen to launch active ETF versions of their most successful funds.

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.