BlackRock has launched its Global Unconstrained Equity (Glue) fund in Hong Kong and Singapore.
Glue is a concentrated and unconstrained equity fund that invests in equity securities which have viable competitive advantages and the potential to produce long-term capital growth.
Managed by Alister Hibbert and Michael Constantis, the fund invests in 20-30 companies that show resilience and strong potential to sustain high returns over time. These companies can be from anywhere in the world and from any industry, although they need to demonstrate certain characteristics, including an established market position, addressable market opportunity, high margins and returns and strong management teams.
“Great businesses that can sustain high returns over very long periods are rare but may offer significant outperformance. Our unconstrained, high conviction and long-term approach helps us find outperformance and capital growth where few others are looking,” said Hibbert.
“Our team is dedicated to the effort of identifying these companies from around the world – which requires a broad worldview, persistence and human insight.”
“Our observation would be that many active funds use the benchmark as to some extent the core of the portfolio and then deviate from that using tracking error and active weights,” said Joseph Williams, head of strategy for strategic equity and fundamental equity hedge funds, at a recent press conference.
“We want to free ourselves up of the constraints of having to invest in every sector, having to worry about having active weights and tracking errors, and instead, simply ask questions around what are the very, very best investment ideas in the market and only invest our capital with those.”
