The core funds at Cazenove Capital follow a business cycle investment approach. The business cycle affects the earnings of different styles of companies during its various stages. By understanding where we are in the cycle we can pre-empt change. We position our funds in those companies’ shares that we anticipate will outperform going forward. We have identified seven different style groups of companies. Our managers tilt their portfolio weightings in these style groups depending on the business cycle, as illustrated below.
The business cycle
Unlike many other fund groups we are not wedded to a particular investment style (e.g. growth or value). This pragmatic approach means that style volatility is reduced within our portfolios, which has resulted in our managers achieving historically superior relative risk-adjusted returns. We have developed a range of core funds which could be considered fundamental to any client’s portfolio.
