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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Cooper Investors Global Equities Fund (Unhedged) 2023 Q2 Investor Letter | Buyside Digest

Back to Fund Profile (Cooper Investors Global Equities Fund (Unhedged))

Primary Source Intelligence • Q2 2023 Letter Analysis

Cooper Investors Global Equities Fund (Unhedged) Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Cooper Investors Global Equities Fund (Unhedged). This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

Annualized+9.73%

Positioning StanceConstructive

GeographyGlobal

Digest Analysis

Quick Take

"Cooper Investors underperformed due to underweight mega-caps but found opportunities in AI infrastructure semiconductors and Japanese governance reform plays. The narrow market created value pockets in quality names like Ulta and CDW."

Executive Summary

Cooper Investors delivered a 5.38% quarterly return, underperforming the 6.83% benchmark due to underweight positioning in mega-cap technology stocks that drove market returns. The fund's core thesis centers on finding Risk Adjusted Value Latency (RAVL) in quality businesses trading below intrinsic value. AI emerged as the dominant investment theme, with the manager positioning in semiconductor infrastructure through TSMC and Tokyo Electron as picks-and-shovels plays. Japan outperformed significantly with new governance reforms creating optimism, and the fund maintains an overweight position. The narrow market created opportunities in overlooked quality names like Ulta Beauty and CDW Corp, where the manager rotated capital from expensive positions like Hoya. Key contributors included APi Group, Arthur J Gallagher, and London Stock Exchange Group, while detractors were Frontier Communications, Crown Castle, and Agilent. The portfolio holds 41 businesses across 12 countries, positioned around various subsets of value including stalwarts, growth companies, and cyclicals, with significant embedded value latency despite strong absolute performance.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

72%

CautiousHigh

High Conviction (72%)

The manager demonstrates high conviction through concentrated positioning in 41 names with detailed thesis explanations for each holding. They provide specific position sizing context, explicit buy/sell decisions with clear rationale, and detailed company-specific analysis. The RAVL framework provides consistent decision-making criteria across all investments.

Growth Outlook

25%

BearishBullish

Bearish (25%)

The manager acknowledges positive market momentum but notes concerning recession indicators including inverted yield curves, declining consumer confidence, and rising bankruptcies. They describe markets as maintaining upward trajectory 'in the face of data that typically indicate a recession is nigh,' showing cautious optimism tempered by macro concerns.

Risk Appetite

40%

DefensiveAggressive

Defensive (40%)

The fund is selectively adding to positions where RAVL emerges, rotating capital from expensive names to undervalued opportunities. They initiated new positions in IBKR, Ulta, and CDW while selling Hoya. The 3% cash position and active rotation suggest moderate risk appetite with selective deployment rather than aggressive positioning.

Capital Deployment

15%

De-riskingDeploying

De-risking (15%)

The fund engaged in capital rotation, selling Hoya and funding new positions in Ulta, CDW, and IBKR. With 3% cash and active rotation rather than net deployment, this represents modest positive activity. No significant cash level changes mentioned, suggesting balanced rotation rather than aggressive deployment.

Forward Guidance

35%

CautiousExpansionary

Cautious (35%)

The manager expresses intent to remain alert for opportunities, particularly in large technology businesses moving to maturity stages. They plan to continue seeking superior RAVL down the market cap spectrum and maintain overweight to Japanese equities. Language suggests selective, patient approach rather than aggressive deployment.

Language Signal

45%

BearishBullish

Balanced (45%)

The letter balances opportunity language (attractive, undervalued, excited, superior RAVL) with risk acknowledgment (recession indicators, challenging environment, soggy trends). Positive terms around specific investments and themes are offset by macro caution and market structure concerns.

Perceived Risk

65%

Low RiskElevated

Elevated Risk (65%)

The manager explicitly identifies multiple recession indicators including inverted yield curves, negative Conference Board LEI, declining consumer confidence, falling money supply, and rising bankruptcies. They note central bank tightening effects still filtering through the economy, showing meaningful concern about macro environment.

Opportunity Density

70%

ScarceAbundant

Abundant (70%)

The manager identifies multiple opportunity areas including AI infrastructure, Japanese governance reform, and undervalued quality businesses created by narrow market dynamics. They describe 'pockets of opportunity' and superior RAVL further down the market cap spectrum, suggesting a reasonably rich opportunity set despite macro concerns.

Time Horizon

75%

Short-TermLong-Term

Decade+ (75%)

The manager demonstrates multi-year investment horizon through references to long-term secular growth trends, patient approach to following companies before investing, and focus on businesses with durable competitive advantages. The RAVL framework inherently requires patience for value realization, and they explicitly mention biding time before investing in Ulta.