Bestinvest says
This is the offshore version of Bill Miller’s US domiciled Value Trust, which invests in large cap US equities. Miller believes that capital growth is most consistently achieved through long term ownership of companies purchased at large discounts to their intrinsic value. The investment approach is benchmark unconstrained with an emphasis on in-depth industry and company research (Miller aims to understand an industry or company in much greater detail than his peers). This often means applying a pragmatic and contrarian approach, eg buying into emerging stories or buying an unloved stock when others have given up on it. Miller invests for the longer term so portfolio turnover is low.
The objective of this fund is to out perform the S&P 500. The manager believes this is most consistently achieved through long term ownership of companies where those positions were purchased at large discounts to their intrinsic value.
The stock selection strategy favours sector/industry leaders, with financially sound businesses and strong management.
As value style managers, the characteristics of the portfolio are similar to traditional value funds, i.e. low P/E, low price/book, low enterprise value/EBITDA and low price/cash flow.
The manager's success is also based on a desire to understand an industry or company to a much greater level than his peers. This often means applying a pragmatic and contrarian approach. That is, buying into emerging stories or buying an unloved stock when others have given up on it.