Fundsmith Equity

valiant24

Alexland said:

I thought he had been in Mauritius for many years.....

4 years according to the FT https://www.ft.com/content/04f82560-ff63-11e6-8d8e-a5e3738f9ae4.
It also says 'One friend tells City Insider: “He’s not getting any younger. He wanted to take life a bit easier.”'
Thus, Dear Reader, my point stands!

SoftCentaur

Thanks for all the helpful comments .... this obviously excludes maxsteam   lol
I now understand those variants.   # I can see clearly now, the steam has gone #

Steve182

SoftCentaur said:

Thanks for all the helpful comments .... this obviously excludes maxsteam   lol
I now understand those variants.   # I can see clearly now, the steam has gone #

With many funds you may find your platform offers only one variant anyway (or two if there is an income and accumulation option) so in some cases there may no choice to make. 

Moe_The_Bartender

valiant24 said:

Alexland said:

It's a bit worrying that last year Terry started moving his own money into a new private hedge fund which might be shorting stocks and although they made a statement it's still not entirely clear why he is choosing to do this as I am sure he would be able to live comfortably from fundsmith dividends which is what he suggested others might do in a past agm.

I've been invested in Fundsmith since the start, and it has made me hundreds of thousands of pounds simply by investing my wife and my wife's ISA allowance for several years.  So I am a big fan.   But what I find more worrying is that "Terry" has recently moved to Mauritius or somewhere.   I don't see how he can as effectively run the business day-to-day from there, although he claims to do so.
Thus, per another post, I've been thinking of taking some profits for some while.

Lots of people work from home these days, I understand. Something to do with a virus that’s going around.

Aminatidi

If you think about it Terry living in Mauritius should be neither here nor there.

There are lots of funds available in the UK run by teams in the US and all over the world and they were available prior to the pandemic.

We all run our own funds and how do we do so?  From home or wherever we're based right now.

If you asked me to think of a single article over the past 12 months where a fund manager had said they had struggled to run their investments because they were working remotely I couldn't think of one.

Now of course "they would say that" but it honestly doesn't strike me as something where physical presence is required.

I wonder perhaps if it's a mindset thing about "bums on seats" more than it might be a commentary on Terry Smith or any other fund managers ability to work from anywhere.

ChesterDog

Alexland said:

I am more interested in this new private hedge fund he seems to be running and wondering if it relates to the value style rotation we saw in the market last year.

IIRC, he's not running it himself. It's run independently and was (at least initially) created to manage money that he previously had tied up in bonds.

Alexland

ChesterDog said:

IIRC, he's not running it himself. It's run independently and was (at least initially) created to manage money that he previously had tied up in bonds.

Yes they mentioned the bond thing in the statement but it left me wondering why at that level of wealth he would have been holding bonds or why he would need a substitute. Surely the dividends from his shares would be enough for his modest needs?

Prism

Alexland said:

ChesterDog said:

IIRC, he's not running it himself. It's run independently and was (at least initially) created to manage money that he previously had tied up in bonds.

Yes they mentioned the bond thing in the statement but it left me wondering why at that level of wealth he would have been holding bonds or why he would need a substitute. Surely the dividends from his shares would be enough for his modest needs?

The dividend yield of Fundsmith is really low at 0.33% currently but I am assuming he would just sell what he needed anyway rather than using dividends. Not that he would need to since Fundsmith pays him £50m+ per year.

I assume this long/short fund is simply a safety net or possibly an experiment - hard to know.

Alexland

Probably a low yield because the high charges are deducted from income but with enough invested even 0.33% should be enough that together with the company income he doesn't need bonds. That's what makes the hedge fund so curious.