A unique approach to finding quality stocks

The managers of CI Black Creek International Equity focus on firms that are likely to grow their market share.

Shehryar Khan, CFA 20 March, 2018 | 5:00PM

An experienced team led by veteran Richard Jenkins manages CI Black Creek International Equity. Their laser focus on identifying firms that will not only maintain but grow their market share for the next 10 years, and buying those that trade at a discount to their estimate of intrinsic value, has resulted in category-leading performance since the fund's October 2008 launch. This strategy is worthy of consideration for core foreign exposure in an investor's portfolio.

Jenkins joined Black Creek's founder Bill Kanko in 2008 and now leads a team of six investment professionals. Jenkins is the lead manager on this fund, and while Kanko is not directly involved with the final decision-making, this fund has significant overlap of positions with his CI Black Creek Global Leaders fund. The firm's managers strongly believe in having their own skin in the game alongside fundholders; its internal rules state that the team are only allowed to invest in the stock market through their own funds.

The team builds a 30- to 40-stock all-cap portfolio from the bottom up. This helps make the fund look very different from its benchmark, the MSCI EAFE Index, confirmed by a 98% active share. Taking differentiated bets from the benchmark increases the team's odds of producing differentiated results. The fund's category-leading results since inception is evidence that this approach has worked. However, the impact of any potential mistake in a concentrated portfolio will be magnified, and as such vetting the thesis of each stock is of utmost importance, and where the team at Black Creek spend most of their time.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

About Author

Shehryar Khan, CFA

Shehryar Khan, CFA  Shehryar Khan, CFA, is a senior investment analyst for Morningstar’s Investment Management group.

© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies