Ibbotson International Shares High Opportunities - Altrinsic

Altrinsic     

Investment Style: Value (Global)

Altrinsic Global Advisors (Altrinsic) is located in Stamford, Connecticut, and is 100.0 percent employee-owned and managed by its staff. Altrinsic was established in April 2000 by Chief Investment Officer John Hock.

Altrinsic is an active, value-oriented global equities manager. The firm believes that its focus on understanding both returns and profitability, as well as being highly-disciplined in purchasing undervalued securities, results in outperformance with lower risk and volatility compared to value peers. Altrinsic is an aggressive value manager with a mid- to small- cap bias.

Altrinsic has a three-step investment process which centres on ideas generation, fundamental company and industry analysis, and portfolio construction.

Ideas generation is a mix of long-term quantitative screens that identify undervaluation, as well as gathering company ideas from qualitative industry research (part of step two). Fundamental research consists of understanding the economic drivers of a company through the analysis of 10-plus years of historical accounting information, understanding the business drivers of returns through different business cycles, accounting validation of statements, analysis of industry structure, and assessment of management capabilities.

Altrinsic also determines both internal and exogenous risk factors for the company. The fund manager then determines a valuation on the basis of discounted cashflow analysis, multiples analysis (share price relative to normalised earnings power), and private market and asset valuation analysis. The sector analysts then rank ideas within their industries, and present these to the team for debate. Portfolio construction combines the 60-100 most attractive companies on the basis of valuation and risk-adjusted return profile.

Altrinsic has a small team of dedicated analysts led by three senior portfolio managers who also have research responsibilities. The head of the investment team and the Altrinsic business is Chief Investment Officer John Hock, also the firm's founder and the main architect of its process.