Best

Ideas

 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.

 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:

Analysis

Structure

Behaviour

Information

 

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. 

Cumulative Returns Since Inception

  • Best Ideas: 24.25%

  • 80% SPDR S&P 500 ETF (SPY) and 20% SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL): 18.64%

  • Difference: +5.61%

Prior to 1/4/2020, Best Ideas was available in two variants.

Best Ideas Competitive Edge Historical Performance

Best Ideas Market Timing Historical Perfromance

Top & Bottom Five Contributors - Since Inception

Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur.

Figures are current as at 31st May 2020.

Performance is in AUD.

Figures are NET of investment management fees and GROSS of performance fees.

Returns are based on a composite of all client accounts. 

Inception date for the Best Ideas Competitive Edge investment strategy is 1/3/2019. Inception date for the Best Ideas Market Timing investment strategy is 11/4/2019. The strategies were combined into a single strategy on 1/4/2020.

Benchmark returns are converted into AUD using monthly exchange rate data from Interactive Brokers LLC and the Federal Reserve Economic Data website: https://fred.stlouisfed.org/ .

All figures are calculated by Interactive Brokers LLC.