Moerus Worldwide Fund - Institutional Class · NASDAQ:MOWIX
Moerus Worldwide Fund - Institutional Class — Moerus Worldwide Value Fund — Q2 2023 Earnings Presentation
24 slides from Moerus Worldwide Fund - Institutional Class's earnings presentation, Jun 30, 2023
Slide 1: Moerus Worldwide Value Fund
FOR INSTITUTIONAL INVESTOR USE ONLY – Not for Public Distribution Moerus Worldwide Value Fund Quarter Ending June 30, 2023 MOWIX - MOWNX
Slide 2: Disclaimer
Disclaimer The information in this document is not an offer to sell or solicitation of an offer to buy an interest in any investment fund or for the provision of any investment management or advisory services. Any such offer or solicitation will be made only by means of a Confidential Private Offeri
Slide 3: Moerus Capital Management
Moerus Capital Management ► Background: After nearly a decade plus of working together, Amit Wadhwaney, John Mauro, and Michael Campagna formed Moerus Capital Management in September of 2015 with the goal of doing only one thing and doing it very well – pursuing our unique style of value investing.
Slide 4: The Moerus Name
The Moerus Name Moerus is the Ancient Latin word describing a city’s defensive walls. ► Our style of investing requires a deeply discounted asset. However, cheapness alone is not enough to warrant an investment. We believe a keen awareness of risks is essential to generating attractive returns over
Slide 5: Investment Team
Investment Team ► Amit Wadhwaney, Portfolio Manager: Amit has over 30 years of experience researching and analyzing investment opportunities in developed, emerging, and frontier markets worldwide, and has managed global investment portfolios since 1996. Prior to founding Moerus, Amit was a Portfolio
Slide 6: Investment Philosophy
Investment Philosophy ► A Long-term Focus • In our experience, few investors actually focus on the long term. • Balance Sheet is typically weighed more heavily than the Income Statement. • A good business with a strong Balance Sheet will usually ride out short term market and industry dislocations.
Slide 7: Investment Overview
Investment Overview ► Opportunistic Global Bottom-Up Value Investing • Focus on the business, the industry it operates in, its valuation & investment risks, etc. • Limited dependence upon long-term macro forecasts, maintain an acute awareness of impact on the investee company of adverse shifts in re
Slide 8: Investment Overview
Investment Overview ► Conservative Valuation Methodology • Focus on the here & now, rather than projections given limited macro forecasting. • Conservatism in both the assumptions & the valuation methodology. • Important for Margin of Safety considerations (taken in conjunction with the below). ► Ri
Slide 9: Examples of Sources of Ideas
Examples of Sources of Ideas Misunderstood Companies Global Macroeconomic Trends Complex Corporate Structures Capital Markets Crises Underfollowed Businesses Commodities Cycles Holding Companies Cyclical Downturns Transitory Accounting Quirks Analytical Market Turmoil Complexity Event Industries Spi
Slide 10: Typical Research Process
Typical Research Process ► Strive to Develop a Thorough Understanding of the Business: • Know the industry, business, and regulatory environment • Identify key risk factors • Understand the business model ► Financial Statement Analysis: • Evaluate Balance Sheet and asset composition • Relationship b
Slide 11: Moerus Capital Management ESG Policy
Moerus Capital Management ESG Policy ► While Moerus is not an ESG Manager, ESG risks are evaluated and considered in making investment decisions • ESG factors alone do not drive investment decisions. • Poor ESG practices are bad for business. ► Moerus looks to be thoughtful and proactive in our ESG
Slide 12: Portfolio Construction
Portfolio Construction ► Benchmark-independent approach ► Bottom-up opportunities rather than top-down or index considerations ► 15-50 positions ► Top ten holdings account for a meaningful portion of the portfolio ► Cash as a residual of the investment process ► Risk aggregation considerations CONFI
Slide 13: Portfolio Construction
Portfolio Construction ► Position Sizing • Goal is to have a portfolio of high conviction ideas, but prudent diversification is appropriate. o Qualified by factors such as liquidity, financial risk, and business quality. • Key drivers of position size: o Level of discount to our NAV estimate o Quali
Slide 14: Sell Discipline
Sell Discipline ► Valuation: • Buy on assets, sell on earnings expectations • Security trades at a material premium to an optimistic valuation. ► Corporate Actions: • Company is acquired or goes private • Sizeable return of capital to shareholders • Spin-off or sale of assets ► Fundamental Change to
Slide 15: Risk Management Framework
Risk Management Framework ► Holistic approach toward mitigating risk: Company Specific Internal External View Company-Specific Company-Specific Risk Factors Risk Factors Risk Management Portfolio Avoid Aggregation of Risks Level View Position Sizing | Industry Exposures | Geographic Exposures CONFID
Slide 16: Portfolio Characteristics – as of June 30, 2023
Moerus Worldwide Value Fund Portfolio Characteristics – as of June 30, 2023 Top 10 Positions Country % of Assets Moerus MSCI All Worldwide Country Cia. Brasileira de Distribuição Brazil 5.37% Value Fund World Index Despegar.com Corp Argentina 5.05% Number of Holdings 35 2,935 Tidewater Inc USA 4.17%
Slide 17: GICS Industry Group Weights
10% 12% 14% 16% 18% 0% 2% 4% 6% 8% Financial Services Materials Banks Energy Consumer Services Household & Personal Products Equity Real Estate Investment CONFIDENTIAL Moerus Worldwide Value Fund Consumer Staples Distribution Transportation Insurance GICS INDUSTRY GROUP WEIGHTS (%) Real Estate Manag
Slide 18: Country Allocation
Moerus Worldwide Value Fund Portfolio Characteristics – as of June 30, 2023 COUNTRY ALLOCATION (%) 30% 25% 20% 15% 10% 5% 0% CONFIDENTIAL 18
Slide 19: Performance – as of June 30, 2023
Moerus Worldwide Value Fund Performance – as of June 30, 2023 Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Returns are shown net of fees and expenses and assume reinvestment of dividends and ot
Slide 20: How to Invest
How to Invest Business Development & Investor Relations Mutual Fund Email: IR@moeruscap.com Moerus Worldwide Value Fund ► Ticker: MOWIX/MOWNX Mary Papamarkou, Managing Director ► Minimum: $100,000/$2,500 Phone: (646) 970-2836 ► Available to institutions and individuals Moerus Capital Management LLC
Slide 21: Appendix
APPENDIX =" MOERUS CAPITAL MAN AGEMENT CONFIDENTIAL 21
Slide 22: Investor Relations
Investor Relations Mary Papamarkou, Managing Director: Hayden Barry, Associate: Ms. Papamarkou has over 30 years of experience Ms. Barry joined Moerus as an Associate in 2020, and leads the Marketing, Business Development, assisting in various aspects of the firm’s and Relationship Management aspect
Slide 23: Operations
Operations Thomas Quinn, COO/CCO: Julie Smith, Chief Financial Officer: Mr. Quinn joined Moerus in 2015 and has over 20 Ms. Smith has over 25 years of investment years of experience running the operational, management industry experience with a focus on compliance, and financial development aspects
Slide 24: A Unique Approach to Global Investing
A Unique Approach to Global Investing ► Amit Wadhwaney has had a long career investing in developed, emerging, and frontier markets. ► A unique brand of investing, as profiled by, among others: • Manual of Ideas (MOI) Global • Smart Money • Barron’s • The New York Times • Forbes • Value Investor Ins
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