Alma Apis Global Long / Short Equity Fund
- Alma Apis Global Long / Short Equity Fund invests in small and middle cap equities, mainly in North America, Asia and Europe.
- Management of the fund is delegated to Apis Capital Advisors, a company regulated by the SEC, based in New York, and run by its founders since its creation in 2004.
Cumulative Performance (%)
Fund Inception 17 January 2018
The performance data shown represents past performance. Past performance is not a guarantee of future results. Current performance may be lower or higher than the performance quoted. The investment return and the principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
Strategy & Manager
The Fund strategy is a Global long/short equity strategy.
Geographic focus is in North America, Asia, and Europe, with some emerging markets exposure, and a sector focus in Technology, Consumer, Healthcare, Industrials and Cyclicals/Materials.
Emphasis on small to medium capitalisation securities. The portfolio holdings count typically around 80 to 100 names (40/50 longs + 40/50 shorts).
Apis Capital Advisors, LLC is an SEC registered, New York-based, fund management firm founded in 2004. It has a borderless approach to stock selection: Apis seek investments wherever their research achieves the most leverage, inefficiencies are greatest, and analytical competition is weakest – across countries, sectors, and market capitalizations
Apis Capital Advisors is a management owned company, and its team leverages on global relationships built over 25 years of global investing.
Daniel J. Barker, Portfolio Manager and Managing Partner
Dan Barker has more than 25 years of Global Investment experience. He has worked abroad in London (UK) for 5 years, held thousands of meetings with company managers in over 40 countries and invested through Asian Crisis, Russian Crisis, Lehman Crisis, PIGS Crisis, several Latin Crises, and multiple Federal Reserve Rate Cycles.
Dan Barker joined Apis Capital Advisors in 2004. Before then, he was a portfolio manager at J&W Selingman (NY) for 3 years and worked at GE Asset Management for 6 years in Stamford and London. He is a CFA and holds a BBA in finance, Investments and Banking from University of Wisconsin at Madison.
Eric Almeraz, Director of Research and Managing Partner
Eric Almeraz has more than 19 years of Global Investment experience. He Oversees the research process – developing various research approaches, methods for sourcing ideas and documentation of all internal research work for Apis Capital Advisors.
Before joining Apis, Eric worked for J&W Selingman as a global industrial analyst and for the Capital Group, as a Research Associate. Eric is Adjunct Professor of Applied Value Investing at Columbia Business School since 2013. He is a CFA, has a BS in Accounting and Fincnace from NY Univerity and an MBA in Finance from Columbia Business School.
Statistics & Commentary
The performance data shown represents past performance. Past performance is not a guarantee of future results. Current performance may be lower or higher than the performance data quoted. The investment return and the principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.
Sector Breakdown as a % of AUMas of 31/12/2018
Geographical Exposure as a % of AUMas of 31/12/2018
Portfolio Characteristicsas of 31/12/2018
|Number of securities - long book||34|
|Number of securities - short book||45|
|Weighted Average Market Cap ($ bn)||8.3|
|Median MArket Cap ($ bn)||2.9|
|Long Equity Exposure (% of NAV)||80.3|
|Short Equity exposure (% of NAV)||73.6|
|Gross Exposure (Long + Short) (% of NAV)||120.2|
|Net Exposure (Long - Short ) (% of NAV)||27.0|
Top 10 Position Detailsas of 31/12/2018
|Security name||Sector||% AUM|
|Health Care - Ireland||7.45|
|Consumer Discretionary - South Korea||5.19|
|Consumer Staples - Japan||4.31|
|Health Care - USA||3.70|
|Energy - Norway||3.53|
|Consumer Staples - Netherland||-1.95|
|Industrials - France||-2.11|
|Index - Taïwan||-1.95|
|Consumer Staples - United States||-1.74|
|Health Care - South Korea||-1.74|
Investment Manager's Commentaryas of 31/12/2018
Market Review and Outlook
The performance of our Fund in 2018 was driven by weakness across all geographies, which continued from the third quarter into the fourth. Foremost among all regions during the year was Asia Ex-Japan which was followed by Europe. From a sector perspective, Technology accounted for most of the negative performance, followed by Healthcare. At the individual name level, our biggest detractor during the year was Holy Stone, while our largest winner was a long in Fila Korea. Holy Stone has been discussed in our last two quarterly letters, while we highlight our investment thesis for Fila in this letter below.
During 4Q18, our biggest winner was also Fila and our largest detractor was a long in Silicon Motion. Silicon Motion has been discussed in detail over the years. It sold off with the broader market, but we continue to see excellent value there.
Our investment process typically leads us to long ideas where, after doing a significant amount of up-front work, we start a small (“farm team”) position and add to that as the price action works in our favor, along with meeting fundamental milestones. In the back half of 2018, this strategy struggled as fundamentals continued to hit and often exceed their milestones but the stock prices – specifically in macro sensitive sectors such as Cyclicals – dropped. The decline was dramatic and fast, much more so than we would have expected given the macro backdrop.
In almost every investment strategy, a sustained trend is required for success. This was largely
absent across most asset classes and markets in 2018. On the short side of our portfolio, we typically focus on companies and industries in long-term secular decline (such as cigarette lighters & newspapers), but these are not terribly sensitive
to sudden downturns in the stock market, so we benefit from these shorts to a much lesser degree. While we don’t obsess about the general market, we do use a checklist of factors to monitor the macro environment and reconcile this with our stock picks. The idea is to get out of the way of oncoming traffic. While a few of these factors had begun to soften by 3Q18 they were still consistent with an upwardly biased market – a conclusion echoed by most. But every sell-off is a bit different and this one was particularly sharp, especially outside of the U.S. where markets like Germany and Korea fell from peak-to-trough by ~30% in dollar terms. Of course, we are inclined to speculate about why this sell-off was different (and why we didn’t predict it!) with the humility to acknowledge that as fundamental investors we “need” an
explanation, but there may be no satisfying one. We think there may be a few reasons why this was different than past patterns. For starters, there is a unique cocktail of political issues that the market may be losing patience with (this may be an understatement, but we’ll spare the reader a dissertation). This is tough to discount, and it seems at various points the market dismisses these concerns and then it doesn’t. Additionally, we must acknowledge that information has gotten very democratized; valuable indicators (e.g., yield curve) are publicized, largely known and easily tracked. It’s certainly possible that these softening indicators are being discounted sooner than ever, as though they are flashing red. As we highlight below, in addition to tweaks to our gross and net exposures, we’ve adjusted the portfolio to refocus our efforts on positions that should be less vulnerable to either political or macro risks in acknowledgment of the market volatility and softening indicators. While 2018 was a disappointment, the volatility has shaken a lot of fruit out of the tree – we plan to take advantage of these opportunities in 2019. We are first and foremost stock pickers and believe
we can continue to generate strong, long-term returns for our investors.
Facts & Documents
Fund Domicile: Luxembourg
Management Fee: 1.25% p.a. for I shares
Fund Type: UCITS SICAV
Fund Launch: 17 January 2018
Base Currency: USD
Depositary, Administrator, Transfert Agent: BNP Paribas Securities
Dealing: Each day with a 1-day notice
Cut-off time: 12pm CET
Management Company: Alma Capital Investment Management
Investment Manager: Apis Capital Advisors LLC (New York, US)
Fund Managers: Daniel L. Barker
Countries where the fund is registered:
Luxembourg, United Kingdom, Germany, Singapore
Institutional USD Capitalisation Share Class
ISIN: LU1321566892 Ticker: ALCGIUC LX Launch: 17 Jan 2018
Institutional EUR Hedged Capitalisation Share Class
ISIN: LU1321566975 Ticker: ALCIEHC LX Launch: 11 Jun 2018
available upon request