Loomis Sayles US Equity Leaders I/A (GBP)

Investment Process

Hamzaogullari takes a long-term investment perspective, avoiding what he views as ‘short-sighted’ biases such as the market’s herd mentality which can overshadow company fundamentals. He believes that only 1% of businesses have long-term sustainable growth potential and that a thorough research process is needed to identify those that are trading below their intrinsic value. Hamzaogullari has developed a seven-stage investment process based around quality, growth and valuation, to help him and his team do this. The first four steps focus on quality including looking at a company’s barriers to entry, cashflow generation and long-term shareholder orientated owners. They then looks at growth drivers for the business over a 10 year plus period and its intrinsic value range. The stock weightings will typically be built up to 2.5% to 5% and allowed to grow to 8%. The managers will trim or add to the positions based on valuation. The fund’s main exposure is to the information technology and communication services sectors, but the team try to limit this risk by owning a mixture of both new and old systems and processes.