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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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TEAM Asset Management 2024 Q2 Investor Letter | Buyside Digest

Back to Fund Profile (TEAM Asset Management)

Primary Source Intelligence • Q2 2024 Letter Analysis

TEAM Asset Management Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, TEAM Asset Management. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

QTD+8.1%

Digest Analysis

Quick Take

"European banks remain significantly undervalued versus peers while benefiting from rising infrastructure spending. Commodities benefit from supply constraints and geopolitical dynamics."

Executive Summary

PM Capital's June quarter performance reinforced their strategy of investing in high-quality, undervalued companies leveraged to global themes. The fund returned 8.1% for the quarter, led by European bank positions, particularly AIB Group which gained 17% following removal of Irish government shareholding. Commodity holdings Newmont, Freeport, and Teck also contributed positively amid geopolitical tensions and tariff policy impacts. The portfolio's two largest themes remain European banks and commodities. European banks are significantly undervalued relative to US and Australian peers, with rising infrastructure and defense spending expected to stimulate economic activity and credit demand. In commodities, underinvestment in resource projects constrains supply while new demand drivers emerge from renewable energy transition. The fund increased net invested position from 75% to 85% during April market weakness, adding new positions in Spectris, Diageo, Capstone Copper, Endeavour Group, and GQG Partners while exiting Shell. The manager maintains conviction in their valuation-focused, long-term approach despite short-term market noise.

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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%)

High conviction evidenced by concentrated themes (European banks as largest theme, commodities as second largest), specific position sizing discussions, and willingness to increase exposure during volatility. The manager names specific holdings, discusses valuations in detail, and maintains positions despite short-term underperformance. However, the diversified portfolio structure prevents a higher score.

Growth Outlook

25%

BearishBullish

Bearish (25%)

The manager expresses cautious optimism about specific themes like European economic revival and commodity supply dynamics, but acknowledges significant market uncertainty from tariff wars, geopolitical tensions, and Federal Reserve independence concerns. The outlook is constructive on selected opportunities rather than broadly bullish.

Risk Appetite

40%

DefensiveAggressive

Defensive (40%)

The fund increased net invested position from 75% to 85% during market weakness, demonstrating selective risk-taking. However, they maintain active currency hedging and exited energy exposure, showing measured rather than aggressive positioning. The approach is opportunistic but disciplined.

Capital Deployment

55%

De-riskingDeploying

Net Neutral (55%)

Net invested position increased from 75% to 85% during the quarter, representing a 10 percentage point increase in equity exposure. Multiple new positions were initiated during April market weakness, demonstrating meaningful deployment activity. This represents moderate to strong deployment given the 10% increase in net exposure.

Forward Guidance

30%

CautiousExpansionary

Cautious (30%)

The manager indicates continued focus on identifying opportunities from US-China decoupling themes and expects recovery in European banks and commodities to take years. The guidance suggests selective deployment rather than aggressive capital commitment, with emphasis on patience and discipline.

Language Signal

15%

BearishBullish

Bearish (15%)

Language is balanced with both opportunity and risk discussions. Positive terms include 'attractive valuations,' 'compelling opportunities,' and 'solid performance,' but these are balanced by frequent mentions of 'uncertainty,' 'risks,' 'challenges,' and 'market noise.' The tone is measured rather than directionally bullish.

Perceived Risk

65%

Low RiskElevated

Elevated Risk (65%)

The manager identifies multiple specific risks including tariff wars, Federal Reserve independence concerns, geopolitical tensions (Iran-Israel conflict), and macroeconomic challenges in China. These risks are discussed with meaningful detail and context, indicating moderate to high perceived risk in the environment.

Opportunity Density

60%

ScarceAbundant

Selective (60%)

The manager sees selective opportunities in defined areas, particularly European banks and commodities, and was able to add multiple new positions during market weakness. However, they also note the scarcity of genuine valuation anomalies in Australia, suggesting a mixed opportunity environment requiring selectivity.

Time Horizon

75%

Short-TermLong-Term

Decade+ (75%)

The manager explicitly states that recovery in European banks and commodities 'could take years to play out fully, necessitating a patient, disciplined approach.' The recommended investment timeframe is seven years plus, and the strategy focuses on long-term themes rather than near-term catalysts, indicating a multi-year investment horizon.