New US equity fund: A-Manager combines active and passive parts

With the Wellington US Dynamic Equity Fund, German investors can also acquire a special US equity fund domiciled in Ireland, according to Citywire. Stephen Mortimer of Wellington Management is responsible for this – and he can point to an A rating from Citywire.

The special thing: The concentrated portion managed according to the high conviction approach is combined with a passive S&P500 exposure, whereby the weights are variable. The decisive factor is the quality of the current offering for the active part of the portfolio. This mix certainly offers cost advantages.

Mortimer’s investment philosophy thus reflects the recognition that a large proportion of the total return is usually achieved with a few convincing positions. At the same time, fund managers spend a lot of time researching less convincing stocks to fill their portfolios. This raises the question of added value. From this, Mortimer concluded to focus on potential outperformers, in other words, to concentrate on the best ideas.

With more than 22 years of investment experience, Mortimer has been very successful in the industry: since February 2019 he has been consistently rated in the Citywire database – an A rating for much of the year. In general, he analyses according to his own criteria and also uses Wellington’s internal research platform.