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| Quarter | Letter Date | Fund Name | QTD | YTD | Tickers | Themes | Quick Take |
|---|---|---|---|---|---|---|---|
Buyside Digest is not affiliated with, and does not endorse, Ennismore Global Equity Fund. This analysis is provided for institutional research purposes only and is not investment advice.
"Ennismore Global Equity Fund delivered a resilient 0.2% net return in March 2023 despite navigating a challenging, junk-led market rally. Reflecting deep macro concerns about a tightening credit cycle, the portfolio is defensively positioned with a net exposure of 35.6%."
Ennismore Global Equity Fund's core thesis centers on generating superior risk-adjusted returns through a disciplined combination of value-oriented long positions and selective fundamental shorting. During March 2023, the fund's NAV rose by 0.2%, navigating a challenging market environment marked by a low-quality junk rally. The managers are positioned with high caution due to accumulating evidence of an unfolding credit cycle downturn. This cycle is signaled by slowing US consumer spending, rising credit card delinquencies, loosening labor conditions, and prominent bank collapses. Consequently, the fund maintained a conservative posture with a modest net exposure of 35.6% and a low beta-adjusted net exposure of 19%. Key performance drivers included gains in long holdings like Buzzi Unicem and Moneysupermarket.com, offset by detractors such as Schibsted and Tucows. In the short book, the fund faced headwind from Riot Platforms due to Bitcoin's rally but benefited from idiosyncratic shorts. The managers continue to favor highly resilient compounders such as D'Ieteren SA, whose core asset Belron remains significantly undervalued.
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Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.
Market Conviction
A score of 0.70 reflects moderate-high conviction. The manager details heavily sized long positions (e.g., Buzzi Unicem at 6.1% and Thyssenkrupp at 4.8%) and presents a multi-page, detailed thesis on D'Ieteren (4.3%). However, the broader portfolio remains highly diversified across 47 long and 78 short positions.
Growth Outlook
A score of 0.25 reflects a cautious outlook. The manager notes that the 'odds have tilted in favour of the doomsayers' and details severe cracks in interest-rate-sensitive sectors of the economy, leading them to prepare for an economic contraction.
Risk Appetite
A score of 0.25 indicates low risk appetite. The fund is positioned very defensively with a net exposure of 35.6% and a highly conservative average beta-adjusted net exposure of only 19% during the quarter, indicating capital preservation is prioritized.
Capital Deployment
A score of 0.50 is assigned as the fund's gross exposure remained completely unchanged at 117.4% and net exposure increased only slightly from 29.6% to 35.6%. This indicates a stable, net-neutral posture during the month without any major deployment shifts.
Forward Guidance
A score of 0.50 represents a watchful guidance profile. The manager expresses a strong commitment to finding shorts in over-earning cyclical companies, but does not outline any plans for aggressive capital deployment or major portfolio restructuring in the near term.
Language Signal
A score of 0.25 is assigned due to the heavy prevalence of risk-oriented and bearish language throughout the macro and sector commentary, including terms such as 'doomsayers', 'terrible business', 'recession', and 'cracks'. Positive language is restricted to highly specific single-stock situations.
Perceived Risk
A score of 0.80 denotes high perceived risk. The manager outlines systemic dangers from bank collapses, monetary policy tightening lags, housing and commercial property downturns, and increasing credit card delinquencies, dedicating several paragraphs to structural macro threats.
Opportunity Density
A score of 0.60 is selected because the manager sees limited long opportunities, relying on idiosyncratic, niche compounders. However, they express confidence in a 'profitable seam of ideas' on the short side among fundamentally weak cyclical companies.
Time Horizon
A score of 0.75 is given as the manager focuses heavily on multi-year structural trends, particularly regarding Belron's ADAS tailwinds and D'Ieteren's three-year compounding horizons, showing substantial patience over immediate price catalysts.
