Frequently Asked Questions

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• Who owns Aubrey?

  Aubrey is a global, growth stock manager which was founded in 2006. Aubrey is 80% owned by the staff members of the business, the remaining 20% is owned by TRG. TRG has the ability to increase its equity holding up to a maximum holding of 30% through the issuance of convertible notes.

• What is the experience of the team?

  The Aubrey team draws on a collective investment experience of over 90 years in the UK, Europe, USA, Asia and Emerging Markets and an impressive track record of managing high conviction growth equity funds.

  
  

• Describe the portfolio profile

  Aubrey has a clear preference for companies with a strong management record, a strong franchise or brand operating in markets where there are strong barriers to entry.  We have minimum earnings per share and dividend yield hurdles and specific requirements as to both debt levels and cash flow return on operating assets, all of which must be met before a stock will be considered.   A company must also meet our valuation hurdles based on price earnings growth rates before a stock can be bought.

  
  

  Although we are medium to long term investors in companies with these characteristics, Aubrey is aware that such an approach is too often synonymous with complacency.  Accordingly we also apply a strong sell discipline in certain circumstances including where the investment case changes, the valuation breaches reasonable maximums, to optimise positions, or to practice portfolio renewal.

• What is Aubrey’s Business Priority

  Objective:  
  

  Aubrey's aim is to produce significant absolute long term returns for clients 

  • Drawing on collective investment experience of over 90 years in the UK, Europe, USA, Asia and Emerging Markets and an impressive track record of managing high conviction growth equity funds.
  • Following a long term, thematic growth strategy that is unconstrained by the benchmark.
  • Focussing on Global Equity, small product range
  • With no distractions – non-investment tasks are outsourced to Treasury Group.

• How does Aubrey control / define risk

  • Avoidance of capital loss is key 
  • Risk management is not benchmarked
  • Our financial modeling is a risk management tool – rigorous balance sheet/cashflow analysis 
  • Portfolio risk reduced by only holding liquid, mid and large cap stocks 
  • Daily monitoring of stock price and newsflow 
  • Daily portfolio review undertaken 
  • Daily monitoring of portfolio limits 

  All stock positions are reviewed on a daily basis. Positions will be sold in the following instances:

  • Investment case changes
  • Optimising position
  • Valuation concerns
  • Portfolio renewal 

• How many stocks normally make up an Aubrey investment portfolio?

  We aim to maintain a diversified portfolio of between 35-60 stocks.  

  
  

• To hedge or not to hedge - to what degree do you hedge currency and why?

  Aubrey acts as sub-investment manager for both hedged and un-hedged Funds.  The hedged fund is fully hedged back into $AUD and seeks to neutralise the vagaries of FX fluctuations. Aubrey does not actively trade currency to enhance returns as we are stock pickers, not currency traders. The un-hedged fund is open to AUD fluctuations against major currencies which can have both a positive and negative effect on the value of foreign assets.