LO Funds – TerreNeuve is a fundamental, market neutral, global equity long/short strategy with a sustainability focus. The Fund operates with an absolute return approach that aims to deliver uncorrelated, high single digit net returns p.a. with a relatively low volatility target. The team carry out deep, fundamental, bottom up analysis which looks at gauging all significant long-term drivers of company valuation, including less tangible environmental, social and/or governance factors. The team has also developed a proprietary sustainability rating system which forms an integral part of idea generation/investment process. In covering their sectors for decades the team have developed a strong network, with company management interaction a key element of the their decision making process.
Latest Meeting Note
Meeting 13 Oct 2020
The 1798 TerreNeuve fund is managed by Arnaud Langlois, who has developed and honed his investment strategy over the previous twelve years at Brevan Howard, UBS O’Connor, Millennium and now LOIM. The strategy is market neutral in nature,... Read more
The 1798 TerreNeuve fund is managed by Arnaud Langlois, who has developed and honed his investment strategy over the previous twelve years at Brevan Howard, UBS O’Connor, Millennium and now LOIM. The strategy is market neutral in nature, and is based on fundamental analysis focusing on sustainable investing, in pursuit of uncorrelated, high single digit returns. Arnaud Langlois joined LOIM in February 2018 and shortly after launched an offshore product with a UCITS launching in September 2018 with c. $220m ran across the strategy today. Arnaud is supported by two senior analysts and together take a sector specialist approach with a focus on Consumer, Industrials, Materials, Environmental and Medical technologies, combined with a general focus on Europe (c. 65% of the portfolio) and ranging from mid to mega cap, this leads to an investable universe of approximately 700 companies. Stock selection is driven by fundamental bottom up research with company management interaction a key element of the investment process. Furthermore, the team has developed a proprietary sustainability rating system which forms an integral part of the extensive company due diligence process. Ultimately, the team are trying to identify companies strategically positioned to address key environmental and social challenges (which therefore should succeed), while understanding challenged business models should allow the avoidance of value traps and offers opportunities on the short side. Whilst the fund is not ‘thematic’ driven and all positions are based on a fundamental, bottom up view, certain sustainability themes run through the portfolio such as; EU Carbon Risk, Resource Efficiency, Clean Mobility, Hydrogen Economy, with the fund able to be directional or play RV trades towards themes. The fund runs with high conviction in its top ideas with the top 3 longs often 8-10% of NAV each. The fund is mandated to run a max gross exposure of 350% but is typically around the 300% mark, with the net between +/- 15%.