Unearthing hidden gems: The Nedgroup Investments Bravata Worldwide Flexible Fund

As the global investment landscape continues to evolve, fund managers face the increasingly difficult task of identifying lucrative opportunities across borders and industries. Amidst this challenge, the Nedgroup Investments Bravata Worldwide Flexible Fund distinguishes itself through innovation and adaptability. The fund’s unique approach allows it to discover investment gems that often elude other types of funds, which is a distinct advantage in today’s ever-changing market.

The Bravata Worldwide Flexible Fund invests with remarkable flexibility between asset classes and regions, seeking out the most compelling investment opportunities in the world. This global perspective enables the fund to explore diverse markets and uncover unconventional investments like companies who operate in niche industries, have disruptive business models, or hail from other emerging economies. The fund is nimble, which further broadens the opportunity it has to invest in companies that other managers may not look at and invest in small cap stocks that larger managers cannot. Rubis, a French company, is a major player in the energy distribution sector, and is one of the many interesting stocks that the Bravata Worldwide Flexible Fund holds. They operate across Europe, Africa and the Caribbean, focusing on becoming the top or second-largest distributor in their chosen markets. Rubis distributes a variety of products including liquefied petroleum gas (LPG), fuel and bitumen, adapting their offerings to each region's specific needs. They also have a joint venture terminal business that provides storage solutions for various liquids, including some of France's strategic reserves. Notably, Rubis has a growing renewable energy division focused on solar power in Europe, demonstrating their commitment to diversification and sustainability.

When looking for investment opportunities, the Bravata Worldwide Flexible Fund seeks to fill the portfolio with high-quality businesses that have strong and sustainable business models. More importantly, the fund manager looks to acquire these companies at reasonable prices. Having a thorough understanding of the business and purchasing companies at significant discounts to intrinsic value has contributed to the fund’s excellent performance over the years. Another high-quality business that the Bravata Worldwide Flexible Fund holds is Jumbo, a prominent Greek retailer established in 1986. They operate over 80 stores across Greece, Cyprus, Bulgaria and Romania, with brand presence in several Balkan countries. Specialising in a wide variety of products for families, Jumbo offers toys and baby items, seasonal and decorative goods, stationery and books. They maintain a strong online presence through their e-commerce platform, allowing customers to have convenient access to their extensive product selection. The Bravata Worldwide Flexible Fund’s disciplined investment philosophy, coupled with investment choices like Jumbo, demonstrates the fund manager’s skill in creating value for investors in the dynamic world of financial markets.

South Africa has a relatively small investment universe when compared to the expansive global markets and, consequently, the available investment choices are limited. However, the Bravata Worldwide Flexible Fund, with its unrestricted investment mandate, has the flexibility to explore opportunities across the globe and seek out the most promising prospects. A great example is the fund’s investment in SBM Offshore, which is a Dutch company that provides services and equipment for the offshore oil and gas industry. They are known for their floating production, storage and offloading vessels (FPSOs), which are floating factories that extract, process and store oil from offshore wells. SBM Offshore not only builds and leases these FPSOs, but they also design, install and maintain them. They are looking to be a leader in the switch to more sustainable energy sources, like floating offshore wind, using their existing expertise. They pay a healthy dividend and have recently initiated a share buyback programme. This is a great example of a company with predictable and consistent earnings growth that the Bravata Worldwide Flexible Fund looks to invest in. SBM Offshore was purchased by the fund in 2022 and the investment has grown by approximately 42%.

Lastly, in finding these exciting opportunities, it is important that the fund remains risk cognisant. The Bravata Worldwide Flexible Fund defines risk as a permanent loss of capital and dedicates considerable effort to understanding the potential downside. Risk management is a priority and is conducted upfront before any investments are made, as well as on an ongoing basis. The fund manager staunchly advocates for managing risk by avoiding overpayment for investments. A significant portion of the fund’s outperformance is as a result of investing in quality companies, at favourable prices, and allowing the growth to compound.

The Nedgroup Investments Bravata Worldwide Flexible Fund follows an investment philosophy that encompasses a global reach, long-term capital accumulation through buying high quality companies at reasonable prices, prudent risk management, and the flexibility to adapt to varying market conditions. The fund’s nimble nature and flexible mandate enables it to discover niche and unconventional stocks worldwide, resulting in excellent long-term performance, making it a suitable choice for investors looking for a well-diversified, best investment view portfolio.