High stock prices aren’t necessarily expensive, embrace a buy-and-hold mentality, and don’t spread your net too wide: these are core principles for Hyperion’s CIO and portfolio manager Mark Arnold and Jason Orthman.
Hyperion Asset Management has listed its first managed fund on the Australian Securities Exchange, the Hyperion Global Growth Companies fund.
The firm’s $1 billion Global Growth Companies fund saw strong performance in 2020 with returns of 46% versus returns of by the global equity sector of 6%, within the Australian Core Strategies universe, according to FE Analytics.
This performance put it among the top 10 best-performing funds in the 355-strong sector for 2020.
Since inception in 2014 to 19 March, 2021, it returned 322% versus returns of 102% by the global equity sector.
The fund, coded as HYGG, would give investors the option to hold unlisted units via the responsible entity or buy the listed units on the ASX.
Also known as active exchange traded funds (ETFs), structuring the product in this way operated in a similar way to traditional managed fund but had the benefit of intra-day pricing and market-making ability.
It aimed to achieve long-term returns by investing in high-quality global companies with holdings including Tesla, Amazon, and PayPal.
The move follows Magellan Financial Group launching its Global fund as a managed fund on the ASX last year which brought $13.5 billion to the ETF industry.
Performance of Hyperion Global Growth Companies since inception versus global equity sector since fund inception to 19 March 2021
This article was originally published in Money Management
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