What is Best Ideas?
Best ideas is a high-conviction US equity investment strategy. As the name suggests, Guiscard Capital constructs a portfolio using the best ideas of a group of carefully selected fund managers.
We distil the portfolios of up to twenty mutual funds, investment advisors and hedge funds investing across four different investment styles (quality, growth, value and small cap) into two portfolios.
Best Ideas – Competitive Edge is fully-invested in stocks most of the time.
Best Ideas – Market Timing can allocate as little as 25% to stocks if conditions indicate that the risk of a loss of capital is high.
Why Invest in Best Ideas?
The result is similar to a multi-manager equity portfolio, but much simpler and cheaper.
You get all of this in your own managed discretionary account. This means that you have transparency, liquidity and security.
How Does Best Ideas Work?
Long term out-performance requires a competitive edge. There are four types of competitive edge:
Fund managers have access to vast amounts of information and are highly skilled at analysis. Academic and empirical research have demonstrated that their best ideas do beat the market. But business conflicts mean that their portfolios often hold too many stocks. The high fees that some managers charge mean that most of the out-performance goes to the fund manager, not the client.
Guiscard Capital uses the regulatory filings of a diverse group of fund managers to track their best ideas, accessing their informational and analytical edge. We rank these stocks by risk-adjusted return and apply our portfolio construction know-how to select stocks and size positions.
How are we different? Guiscard Capital is a wholly independent firm that treats our clients as partners. We invest our money and our family’s money in the strategies that we manage.
This means that we think about risk and return very differently. Our focus is on limiting the impact of losses to a reasonable level. We’ve built our own set of risk management tools to help us do this.
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