About Us

Munro Partners is a global investment manager with a core focus on growth equities.

Established in 2016 by an award winning investment team1 with a 14 year proven track record of strong returns, the business has over $2 billion in AUM2 and is owned and controlled by key staff. Via our proprietary investment process, we invest alongside our clients to benefit from some of the key structural changes that occur in our world today. The business is Australian domiciled, with its head office based in Melbourne.

12018 Winner of the Best Emerging Manager at the Hedge Funds Rock + Australian Alternative Investment Awards. These awards were established in 2005 to recognize and honour the industry’s top performers.
2As of July 31, 2020

Our Funds

Munro is an active manager focused on delivering absolute returns.

Our Team

Munro Partners are a team of like-minded individuals with previous working relationships that have come together to build, own and operate a successful global equities fund manager. The investment team is led by Chief Investment Officer, Nick Griffin, with a 14-year proven track record of strong returns and outperformance over multiple market cycles.

Nick Griffin

Founding Partner, Chief Investment Officer

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James Tsinidis

Portfolio Manager

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Jeremy Gibson

Portfolio Manager

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Kieran Moore

Portfolio Manager

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Our Philosophy

Investment approach

Growth investors

We are growth investors. Of the 20,000 listed corporations in the world, many profess to be growing, but only a small portion actually grow independently of the broader economic cycle. This is where the Munro investment process focuses. Our research process has been designed and honed over 14 years to successfully sift through the world’s listed corporations to find sustainable growth trends that are underappreciated and mispriced by the market, and the resulting winning and losing stocks.

Absolute returns

Munro runs the long/short absolute return mandate with the liquid alternative, CI Munro Alternative Global Growth Fund.

Index-unaware, aiming for meaningful absolute returns through the investment cycle, while maintaining a capital preservation mindset. Munro’s flexible investment mandate allows it to dynamically manage its market exposure and its currency exposure to protect clients capital and to enhance the long term returns of our investments.

Relative returns

Munro runs the long-only relative return mandate with CI Munro Global Growth Equity Fund.

It focuses on building a long-only portfolio of 20 to 40 growth equities that will benefit from structural changes through a disciplined investment process that provides access to a fully invested portfolio. The objective of the fund is to maximize long-term capital appreciation, primarily through a concentrated portfolio of growth-oriented equities issues anywhere in the world.

Stock picker

The investment process generates a high-hit rate of performing ideas and allows them to be appropriately sized and monetized over long periods. Concentration on stock and sector is important, while risk management and rigorously eliminating underperforming positions is crucial in generating strong absolute returns and outperformance over multiple market cycles.

Active research

At Munro, investing is a process of covering the globe and continuously meeting with management teams. With an “on the ground presence,” Munro’s founding partners built a strong 14-year performance track record by averaging 500 company meetings a year, assembling a focused 1,000-stock universe, and owning a network of over 3,000 key contacts.

Disciplined process

Munro runs a comprehensive and disciplined investment process that seeks earnings upside/downside visibility, valuation multiple upside/downside and catalyst visibility. In addition, the portfolios are managed within clear risk parameters and a disciplined drawdown management framework.

Investment process

Idea generation

Munro identifies sustainable growth trends that are underappreciated, misunderstood and mispriced by the market. With in-depth industry expertise, Munro leverages its global access and prides itself in recognizing key “areas of interest” (AoIs), as well as second and third derivative trends often overlooked by the markets. Its proprietary research process quickly identifies key winners and losers, and quantifies upside and downside, while giving time to price target.

The philosophy is based on three overriding principals:

1. Earnings growth drives stock prices
Companies that consistently earn more than the year before are generally rewarded with higher stock prices over time.

2. Sustained earnings growth is worth more than cyclical earnings growth
Consistent growth, independent of cyclical factors and above the peer group, is generally valued at higher multiples than otherwise.

3. The market will often misprice growth and its sustainability
Consensus earnings estimates often underestimate growth, and pegging to market multiples will often underestimate the sustainability and cash generation capacity of that growth. This allows for opportunities to invest in stocks well below their intrinsic value.

Idea generation process

Ideas are generated from a combination of top-down thematic and bottom-up views. The team identifies medium to long-term structural themes and the resulting investment trends, and distinguishes between trends that are well understood and priced in by the market, as well as those that are underappreciated and overlooked (AoIs).

The research process is a vital ingredient. Constant interaction with corporate management, independent consultants, industry networks, sell-side research and the private equity community all contribute to identifying new AoIs and new investment opportunities.

Munro maintains a generalist research approach across all sectors and markets, with the flexibility to focus resources on areas of greatest opportunity. Analysts act as stock and AoI “champions” when contributing to portfolio construction.

The team has amassed a deep internal stock knowledge database of over 800 stocks, and actively mines this universe for fundamentally driven investment opportunities.


Idea evaluation

Qualitative factors

Qualitative tests: Munro looks for five key company characteristics to gauge whether a listed company is likely to benefit or lose from a particular growth trend and whether that will be sustained over an extended period of time.

GROWTHExhibit faster earnings; EBITDA (earnings before interest, taxes, depreciation and amortization) or revenue growth versus peers and growing total addressable market (TAM)
ECONOMIC LEVERAGEExhibit pricing power or economic leverage to improve margins
SUSTAINABILITYExhibit ability to sustain growth due to scale, position, intellectual property and/or locational advantages
CONTROLExhibit strong management ownership and incentives
CUSTOMER PERCEPTIONExhibit strong customer reviews and rapid adoption

Quantitative factors

Quantitative testsMunro uses three valuation-based tests to quantify earnings upside/downside, multiple upside/downside and time-based catalysts. Ideas graduate from the universe to the portfolio based on the relative upside generated from these tests.

EARNINGS UPSIDE/DOWNSIDEBuild in-house valuation model, and bull and bear-case scenarios
MULTIPLE UPSIDE/DOWNSIDECorporate characteristics score to determine appropriate earnings multiple and price target
CATALYSTSMap catalyst calendar, and timing and magnitude of re-ratings
  

Portfolio construction

Qualitative and quantitative tests combine to build a high-conviction, index, region and sector-agnostic portfolio where capital preservation is driven by a top-down view of market risks and hedging possibilities.

 CI Munro Alternative Global Growth Fund
(Liquid Alt Fund Long/Short)
CI Munro Global Growth Equity Fund
(Mutual Fund Long Only)
EXPOSURE MANAGEMENT
  • Driven by bottom-up idea generation
  • Typical gross exposure between 50-150% and typical net exposure between 50-100%
  • Exchange traded option positions frequently used to protect downside
  • Driven by bottom-up idea generation
  • Exposure is between 90-100%
  • Exchange traded options not used
PORTFOLIO CONCENTRATION
  • Typically 30-50 high conviction positions
  • Typically 20-40 high conviction positions
POSITION SIZING
  • Average longs of 3% and average shorts of 1.5%
  • Average position size of 3%
SHORT PHILOSOPHY
  • Shorts are independent alpha single stock shorts; they are not used as a portfolio hedging tool
  • Shorts are typical represented by secular losers or misplaced securities and are subject to a more prudent risk-taking approach
  • No shorts
AGGREGATE PORTFOLIO RISK
  • AlphaDesk Portfolio Management System used to provide real time reporting and pre/post trade compliance
  • The investment team actively measures portfolio correlations, sector risks, style exposure and aggregate valuation metrics which is formally reviewed weekly
  • AlphaDesk Portfolio Management System used to provide real time reporting and pre/post trade compliance
  • The investment team actively measures portfolio correlations, sector risks, style exposure and aggregate valuation metrics which is formally reviewed weekly

Risk management

Risk management and capital preservation are integral parts of Munro’s investment philosophy and portfolio management.

 CI Munro Alternative Global Growth Fund
(Liquid Alt Fund Long/Short)
CI Munro Global Growth Equity Fund
(Mutual Fund Long Only)
EXPOSURES
  • Maximum gross exposure limit of 150%
  • Maximum net exposure limit of 100%
  • Cash holding between 0-100%
  • Maximum exposure limit of 150%
  • Maximum exposure limit of 90%
  • Cash holding between 0-100%
SINGLE POSITIONS
  • Maximum long position of 10% of NAV at cost
  • Maximum short position of 5% of NAV at cost
  • Maximum long position of 10% of NAV at cost
STOP LOSS
  • Individual stock stop loss formal review at 20% drawdown, 10% for shorts
  • Gross exposure formal review at 3% drawdown
  • Net exposure formal review at 5% drawdown
  • Individual stock stop loss formal review at 20% drawdown
CURRENCY
  • Manage for base currency benefit, with a bias to hedge back to base currency
  • No currency hedging