Munro Partners sees its patience rewarded in performance
Delayed gratification from companies which had produced strong results in October provided sharp share price rises for the Munro Global Growth Fund last month.
In an update for November, the management team of the $1.3 billion Munro Global Growth Fund said it returned 6.8 per cent during the month.
This was helped by the expectation that interest rates in the US and Europe had approached their peaks after consecutive rate rises.
“With rates seemingly peaked for now, companies that had reported strong results in October saw delayed gratification with shares rising sharply during November. Many of the fund’s holdings had produced strong results in late October and had seen a muted or even negative reaction in the share price given the rising rate environment.
“It was pleasing to see rewards coming through for stocks that had reported strong results.”
This included artificial intelligence (AI) companies, which have been a recurring theme for the fund, and high-performance computing companies.
There is a strong technology theme in the fund with 20.8 per cent allocated to high-performance computing, 18.8 per cent allocated to digital enterprise, 9.7 per cent to digital payments, and 8.7 per cent to companies associated with internet disruption.
“Artificial intelligence was a dominant theme for the month with digital enterprise stocks Microsoft, ServiceNow and Adobe all recently releasing generative AI products that we anticipate to be additive to growth rates.
“High-performance computing names Nvidia and Applied Materials were also strong performers, and fall under the hardware side of AI.”
Microsoft is the fund’s largest holding at 7.8 per cent followed by Nvidia at 6.2 per cent, a share which saw outstanding growth earlier in the year when a share price spike saw its valuation briefly jump to US$1 trillion.
In November, the firm announced it will launch a new global equities fund called the Global Growth Small and Mid Cap Fund to be managed by Qiao Ma.
This will typically hold 20 to 40 listed equities, investing in global growth oriented small and mid-cap companies with a market cap of between US$250 million and US$30 billion.
AUTHOR
Laura Dew
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