e-fundresearch.com: How many positions does the portfolio usually contain and what is the average holding period of an investment?
Thorsten Becker: The portfolio is concentrated in best ideas, resulting typically in 45-60 positions with the largest positions 5% of the portfolio at purchase. The average holding period is anticipated to be one year.
e-fundresearch.com: To which extent does fund size impact the efficiency and effectiveness of your investment strategy?
Thorsten Becker: In common with all investment strategies at J O Hambro Capital Management, we have a self-imposed limit on the strategy's size: US$5 billion.
e-fundresearch.com: In which market environment does your investment strategy deliver the best (relative) results?
Thorsten Becker: The strategy has historically generated consistent outperformance in up markets and is more likely to outperform when correlations are low or falling and the opportunities to add value through stock selection are greater.
e-fundresearch.com: Which benchmark is most relevant and how should investors compare the fund vs. benchmarks or peer groups?
Thorsten Becker: The fund is benchmarked against the Russell 2500.
e-fundresearch.com: Which performance did you achieve for the fund YTD and over the past five calendar years in absolute terms and relative to relevant benchmark or other reference indices?
Thorsten Becker: As a team the three of us worked together for six years at Pyramis. Prior to our departure from Pyramis in October 2013, we contributed to annualised outperformance of 660 bps over five years with a tracking error averaging 5%.
e-fundresearch.com: What motivates you in your job?
Thorsten Becker: I enjoy learning new things, understanding how businesses operate and having conversations with top management teams around the world about things that will shape our future. The competitive nature of the job and the ability to quantify performance are also very rewarding.
e-fundresearch.com: Which other profession would you have considered apart from becoming a fund manager?
Thorsten Becker: I was considering becoming a commercial pilot, but was concerned that things would become repetitive in the long run. I did pursue flying as a hobby however and now hold a private pilot license with an instrument rating.
e-fundresearch.com: Thank you!