A private office steeped in two centuries of banking heritage is launching a fund to rival to Terry Smith’s successful Fundsmith Equity Fund.
London and Zurich-based J Stern and Co., which has acted as the family office of the Stern family since 1805, has launched the World Stars Global Equity strategy, opening up a strategy it has been managing for third party families, trustees and charities since 2010.
The fund, domiciled in Luxembourg under the Ucits structure and managed by Stern chief investment officer Christopher Rossbach, runs on a similarly concentrated basis to Smith’s, investing in a portfolio of between 25-30 shares. Turnover is typically between 10-20%.
The Stern fund targets companies with a strong global presence, which Rossbach views as able to compete with the best in their field with a track record of growth.
‘We invest in quality and value. For us, quality is a gating condition. If a company doesn’t have the quality we look for we won’t invest no matter how cheap. We believe in finding companies that compound over time,’ Rossbach said.