The result of this combination is a reduced Net Market Exposure, typically ranging between 30 and 70 per cent. Owning $100 worth of extraordinary global businesses and offsetting this with $60 seeking to profit from deteriorating or flawed businesses and industries produces, for example, a net exposure of $40. For every $100 invested in our Montaka strategy, investors are exposed, in this example, to $40 of risk from the general movement of the market.
As a result of this decreased net market exposure, Montaka carried significantly less market risk compared to many of its typical equity fund peers. In fact, some investors might view Montaka as a substitute for fixed income bonds, rather than as an equity investment.
Global diversification benefits are derived from the typical geographical exposures of; 40-60 per cent North America; 20-40 per cent Western Europe/UK; 20-40 per cent Asia/Australia; and 0-5 per cent elsewhere.
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