Doddington Global Ex US Fund LLC
A focussed EAFE equity strategy with a classic, contrarian value approach to building long-term value.
Investment objective
The Fund seeks to achieve over the long term a total return in excess of that of the MSCI EAFE Index (with net dividends reinvested) through investment in a concentrated portfolio of equity securities, primarily but not exclusively of large companies, selected from the major markets (except the United States) and to a lesser extent from some emerging markets, worldwide. The approach is classic contrarian value, based on bottom-up fundamental research of individual companies.
Fund particulars
| Launch date | 01 February 2017 |
| Fund size | US$45.6m |
| Domicile | USA |
| Structure | LLC |
| Base currency | USD |
| Dealing | Monthly |
| Min. investment | US$3,000,000 |
| Management fees | 0.90% per annum |
| TER | 1.12% per annum |
| Benchmark | MSCI EAFE |
Andrew Goodwin
Nigel Waller
Andrew Goodwin
Andrew joined OP in March 2013. He had previously been employed by SVG Capital in London for seven years managing mainly European equity portfolios. Before joining SVG, he held portfolio management positions at Sovereign Asset Management, American Express Asset Management and Phillips & Drew Fund Management. He graduated from Cambridge University. He co-manages the global and EAFE equity portfolios and contributes to the overall investment selection.
Latest publications
Latest publications
Nigel Waller
Nigel is one of the founding partners of OP. He was previously at MLIM for 13 years. He was a director and portfolio manager on the global team. At MLIM he was also a member of the emerging markets and European teams in London and, from 1997 to 1999, the Asia team in Singapore. He graduated from City University. He is Chief Investment Officer. He co-manages the global and EAFE equity portfolios and contributes to the overall investment selection.
Latest publications
Latest publications
EAFE Equities Strategy
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Commentary
The worst performers during the month were BT (-6%), First Pacific (-4%), Barrick Gold (-3%), Tesco (-2%) and Reach (-2%). The best performers were ArcelorMittal (+17%), Nomura (+13%), Deutsche Lufthansa (+11%), Korea Electric Power (+10%) and Lloyds (+8%).
BT fell after Virgin Media announced that it will stop using BT’s network to provide mobile services to its customers. It will now access the mobile market through Vodafone’s network. The current agreement with BT ends in late 2021 but Virgin Media can start using Vodafone’s network to offer 5G services before then. The loss of the contract, and resulting cash flow, adds further pressure to the dividend.
BT was then front and centre of the political agenda after the Labour Party announced that it would part-nationalise BT should it win the general election as part of a plan to bring high-speed fibre broadband to all homes and businesses for free by 2030. The announcement lacked detail and there are plenty of complexities to consider, including how the pension plan would be treated. BT remains attractively valued on a price-earnings ratio of eight.
ArcelorMittal’s planned purchase of the Italian steel producer Ilva has looked problematic almost from the moment of its announcement two years ago, not only because of the weakness of the European economy since then but also because of the particular difficulties at Ilva’s plant in Taranto, on the coast of the heel of Italy, where there is potential liability for large scale ground contamination and pollution. ArcelorMittal has been operating the plant under a leasing agreement as a preliminary to purchase. In November the company announced that it would not proceed, and that the plant would close in early December. The Italian government has reacted with an urgent attempt to resuscitate the deal. If this were to happen it seems certain to involve the government giving an indemnity to ArcelorMittal in respect of these pollution costs.