Portfolio Manager since 2011
Global Equity
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YTD Return
Return is shown net of fees. See performance below for additional disclosure.
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Total Assets
Profile
The Cambiar Global Equity portfolio is structured as a ‘best ideas’ strategy, whereby sourcing of new ideas will come from Cambiar’s existing domestic and international portfolios.
The strategy has the ability to seek investment opportunities from across the globe, making it Cambiar’s most regionally-diversified portfolio.
Portfolio Construction:
- 45-55 stocks
- Equal-weighted approach – All new stock positions enter the portfolio at 2% position sizes. This construction is designed to reduce excessive stock-specific risk while allowing for the freedom to participate on the upside.
- Fund will take a broadly neutral weight relative to the U.S. and international exposure found in the benchmark
Key Facts
- Inception Date
- 2/28/1998
- Minimum
- $5 MM
Portfolio Managers
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Portfolio Manager since 2011
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Portfolio Manager since 2011
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Portfolio Manager since 2020
Performance
Inception Date: 2.28.1998. The performance information depicted above represents Cambiar’s Global Equity Composite. Returns are presented gross (g) and net (n) of management fees. Gross and net returns are reduced by transaction expenses. Net returns are also reduced by actual investment advisory fees and other expenses that may be incurred in the management of the account. For the periods of 2013 to the present, the gross returns reflect accounts with both gross and “pure” gross performance. “Pure” gross returns, applicable to separately managed accounts that are part of broker-sponsored or wrap programs that bundle fees including commissions (SMA), are not reduced by any expenses, which includes transaction costs, and are provided as supplemental information. Net returns for SMAs are calculated by subtracting actual SMA fees reported by the SMA sponsor. Net of fees performance reflects a blended fee schedule of all accounts within the Global Equity Composite. SMAs incur bundled fees that are charged by brokerage firms which sponsor SMA fee programs and that may include transactions costs, investment management, portfolio monitoring, consulting services, and in some cases, custodial service fees. Cambiar clients and mutual fund investors may incur actual fee rates that are greater or less than the rate reflected in this performance summary. Results are reported in U.S. dollars.
Performance results for the Global Equity Composite are evaluated against the MSCI World Index. The MSCI World Index is a free float-adjusted, market capitalization-weighted index that measures large and mid-cap equity performance across countries with developed markets. The index assumes no management, custody, transaction or other expenses. The MSCI World Index is a broadly based index that reflects overall market performance and Cambiar’s returns may not be correlated to the index. The index is unmanaged and one cannot invest directly in an index. Cambiar’s performance and the performance of the MSCI World Index include the reinvestment of all income. Benchmark returns are net of withholdings taxes. Cambiar typically follows each custodian’s treatment of tax withholding and therefore dividends may be presented as gross or net of dividend tax withholding depending on the custodian’s treatment. Withholding taxes may vary according to the investor’s domicile. Performance is preliminary; please contact us for finalized figures. As with any investments, there are risks to be considered. Past performance is no indication of future results.
View Cambiar’s GIPS compliant presentations here.
Composition
Top 10 holdings
Sector Weights (%)
Attributes
RISK STATISTICS
Active Share
Top Countries (%)
Disclosures
Data is provided for a representative account as of March 31, 2020. Portfolio holdings, characteristics, country breakdown, and sector weightings change over time and may differ between clients based upon their investment objectives, financial situations and risk tolerances. Cambiar makes no warranty, either express or implied, that the weightings shown will be used to manage your account. The securities presented do not represent all of the securities purchased, sold, or recommended by Cambiar and the reader should not assume that investments in the securities identified were or will be profitable. The information provided on the page should not be considered a recommendation to buy or a solicitation to purchase or sell any particular security. There can be no assurance that an investor will earn a profit or not lose money. There can be no assurance that the portfolio will continue to hold the same position in companies described herein, and the portfolio may change any portfolio position at any time. As with any investments, there are risks to be considered. Past performance is no indication of future results.
The one year forecast is included for illustrative purposes and accordingly, no assumptions or comparisons should be made based upon these ratios. Risk statistics are based off a five-year time frame. Portfolio characteristics are based upon third-party sources that are deemed to be reliable, however, Cambiar does not guarantee its accuracy or completeness.
Total Assets represents assets under management for the strategy and are subject to change. Minimums represent intended/proposed minimums for institutional clients and are subject to change.
Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used to create indices or financial products. This report is not approved or produced by MSCI.
Definitions:
Active Share – a holdings-based measure of active management representing the percentage of securities in a portfolio that differ from those in the benchmark index.
Price/Earnings (F1Y) – a calculation that divides the current share price by the estimates of earnings in the next four quarters.
Debt/Equity – Long Term is a calculation that takes interest-bearing, long-term debt divided by shareholder equity.
EPS Growth – Long Term is a calculation that takes the company’s estimated profits for five years divided by the outstanding shares.
Alpha – a measure of risk-adjusted performance.
Beta – a measure of risk in relation to the market or benchmark.
R-Squared – a measure of how closely a portfolio’s performance correlates with the performance of a benchmark index
Sharpe Ratio – a direct measure of reward-to-risk and is calculated by subtracting the risk-free rate from the rate of return for a portfolio and dividing the result by the standard deviation.
Standard Deviation – a statistical measure of historical volatility; a measure of the extent to which numbers are spread around their average.
Commentary
Global Markets – 1Q20 Review
The first quarter of 2020 was startling in so many ways, but mostly in the sudden manner in which it dramatically impacted our lives on both a professional and personal basis. Stepping back for a moment, Cambiar Investors would like to extend our best wishes to all of our clients and partners; the focus on numbers and financial statements can sometimes obscure the fact that this is also a people business. We hope you and your families are staying safe in these uncertain times, and to those who experienced personal loss in the current health pandemic, please accept our heartfelt condolences.
International equities incurred a sharp decline in the first quarter of 2020, as fear and uncertainty regarding the coronavirus outbreak catalyzed investors to move to the sidelines. After originating in China, the coronavirus has swept across the globe, wreaking havoc on a personal, societal, and economic basis. The unprecedented reversal in equities was profoundly negative, with all sectors and regions posting losses for the quarter. In less than a month, market participants have had to shift their mindset from guessing when the bull market will end to now thinking about when the bear market will end. The monetary and fiscal responses from governments/central banks around the world helped to mitigate additional losses (particularly in the credit market), yet questions remain on whether these actions will be sufficient. It is almost certain that additional stimulus measures will be forthcoming.
Bear markets typically come in one of three forms: event-driven, cyclical, or structural. The current period is an event-driven bear market, with the coronavirus as the obvious spark. There may also be some cyclical underpinnings to this bear market, as it is taking place in the latter stages of a long economic cycle. Unlike a market correction that is relatively shallow in magnitude and shorter in duration, bear markets are much more damaging, disorderly, and volatile. This volatility was evident during the quarter via the sharp moves that were taking place on a day-to-day basis.
Recognizing that no two bear markets are alike, the ‘good’ news with an event-driven bear market is that they typically tend to be faster in/faster out in nature. Although the extent of the current contraction is still unknown, many strategists are calling for a rebound in global growth for the second half of 2020, and a continuing re-normalization of economic activity in 2021. Cambiar generally agrees with this outlook, although our efforts remain more focused at the company level vs. calling the market bottom. It is clear the world is very much on the timeline of the COVID-19 virus. As such, a stabilization in new patient cases will be an important marker for investor sentiment, while recognizing that the economic fallout in the form of lost jobs and shuttered businesses will continue to linger.
So how does one navigate a bear market? One observation is that the quality of price signals in panic markets is inherently poor – with moves to the downside (and upside) exacerbated by a more indexed market structure. Given the wide dispersion of stock returns that accompany a bear market, the current environment provides a significant opportunity for active managers such as Cambiar. The objective at Cambiar is not to jump at those names that have incurred the biggest price dislocations. Rather, we are looking to ‘quality up’ the International Equity portfolio in select companies that had been previously unattainable for valuation reasons. We believe this intentional skew towards quality should enable our portfolios to provide a degree of downside protection as the bear market continues, while still participating in the eventual recovery.
Certain information contained in this communication constitutes “forward-looking statements”, which are based on Cambiar’s beliefs, as well as certain assumptions concerning future events, using information currently available to Cambiar. Due to market risk and uncertainties, actual events, results, or performance may differ materially from that reflected or contemplated in such forward-looking statements. All information provided is not intended to be, and should not be construed as, investment, legal or tax advice. Nothing contained herein should be construed as a recommendation or endorsement to buy or sell any security, investment or portfolio allocation. Securities highlighted or discussed have been selected to illustrate Cambiar’s investment approach and/or market outlook. The portfolios are actively managed and securities discussed may or may not be held in client portfolios at any given time, do not represent all of the securities purchased, sold, or recommended by Cambiar, and the reader should not assume that investments in the securities identified and discussed were or will be profitable. As with any investments, there are risks to be considered. All material is provided for informational purposes only and there is no guarantee that the opinions expressed herein will be valid beyond the date of this commentary.
Any characteristics included are for illustrative purposes and accordingly, no assumptions or comparisons should be made based upon these ratios. Statistics/charts are based upon third-party sources that are deemed reliable; however, Cambiar does not guarantee its accuracy or completeness. As with any investments, there are risks to be considered. Past performance is no indication of future results. All material is provided for informational purposes only and there is no guarantee that any opinions expressed herein will be valid beyond the date of this communication.