Fund
Overview

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The Loomis Sayles Global Equity Fund seeks to provide a selective, high-conviction portfolio of competitively advantaged, secular growth companies that trade at a discount to the Loomis Sayles Growth Equity Strategies (GES) team’s estimate of intrinsic value.

The GES team’s investment philosophy – its alpha thesis – represents its longstanding fundamental beliefs regarding the most effective way to generate alpha. The cornerstone of its disciplined decision-making process, the GES proprietary seven-step research framework is structured around three key criteria: Quality-Growth-Valuation. In pursuit of long-term risk-adjusted potential excess returns, the team believes its job as an investment manager is to allocate capital to the most compelling reward-to-risk opportunities.

The search for alpha is the search for skill. The Growth Equity Strategies team’s alpha thesis, and their ability to implement its tenets, constitutes a differentiated approach.

Key Documents

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Investment

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Approach

The Loomis Sayles Growth Equity Strategies team is an active global equity manager with a long-term private equity approach to investing.  Through its proprietary bottom-up research framework, the GES team looks to invest in those few high-quality businesses with durable competitive advantages and profitable growth when they trade at a discount to the team’s estimate of intrinsic value.

The team believes that portfolio level risk cannot truly be managed if they do not first manage risk at the individual security level. Therefore, risk management is an integral part of its investment process, not a separate overlay or optimization process.

Over the long term, the GES team believes that markets are efficient. Near term, however, innate behavioral biases, such as herding, overconfidence or loss aversion influence investment decisions and create asset mispricing.  A long investment horizon affords the GES team the opportunity to capture value from secular growth as well as capitalise on the stock market’s shortsightedness through a process called time arbitrage.

As patient investors, the GES team maintains its research of high-quality, secular growth businesses in order to take advantage of meaningful price dislocations if and when they occur.  The GES team believes investing in companies when its three key criteria of Quality, Growth and Valuation are present simultaneously can help deliver long-term, risk-adjusted outperformance.