Investment process

Based on philosophy that “on average, fast growing cheap stocks with good newsflow outperform slow growing expensive stocks with bad newsflow”.

JPMF is a bottom-up selector seeking stocks with the best value and growth characteristics. Process aims to give equal attention to:

• Stock selection, focusing on value in stocks that are fundamentally sound, cheaper than the market but fallen out of fashion, and growth in stocks that grow earnings faster than the markets supported by good newsflow (earnings revisions and price momentum).

• Portfolio construction using individual stocks as building blocks to create a portfolio viewed as a “superstock” – cheaper than the market with better growth characteristics.

Portfolio constructed to maximise risk allocated to stock selection and style, and minimise risk in all other areas. Risk control is integral to all steps of the process rather than something thought about separately at the end. A key element of the risk-controlled approach is the specific targets set upon active weighting of stocks, sectors, and countries relative to the benchmark index for each portfolio

• Implementation. Execution of transactions to buy or sell shares, which is frequently a major source of erosion of value in portfolios. Emphasis on minimising transaction costs.

Team composition

Christopher Complin, an employee since 1998 is co-head and chief investment officer of the JPMF European Equity Group with particular responsibility for the investment process. The other senior players are fellow co-head James Elliot and portfolio manager Michael Barakos.