Kernow Asset Management is an investment manager focused on All-Cap UK equities. The team around Alyx Wood seeks opportunities with highly asymmetric return characteristics where the investment thesis is differentiated relative to consensus.
Kernow operates in the widening market gap between short-term quant-orientated traders and closet indexers. The strategy uses analysis of fundamentals and catalyst-driven mean reversion to capture contrarian alpha from UK equities. The result is a concentrated and directional portfolio of hidden-quality longs and forensic accounting shorts.
Kernow's team believes that emotions and investor sentiment can swing dramatically more than cashflows and business model changes. Their investment process follows three distinct phases: “We value a company, pay less for it and then trade the catalyst.
The proprietary Kernow Index values every company in the UK Equity Market above GBP100m market cap. Catalysts are pivotal to the strategy: Kernow only trades material over- or under-valuations when they are triggered to move towards the mean. This bottom-up process helps unlock idiosyncratic value while avoiding value traps.
In this video, you will learn:
- Team, culture & contrarian mindset - the most important asset
- How to exploit behavioral biases and harvest “contrarian premium”
- The proprietary Kernow Index & Catalyst Tracker: Powerful, data-driven tools
- Why Kernow just trades UK listed stocks
- How Kernow benefits from the widening market gap between short-term quant-orientated traders and closet indexers
- Why Kernow spends almost as much time on analyzing other investors in their space as on companies: “When I get in, I know who I want to sell to.”
- Why Kernow's investment process is hard to replicate
- Kernow’s benefits to investors & investment outlook
Alyx Wood is CIO of Kernow Asset Management. He is a qualified Chartered Accountant and previously worked as Fund Manager at a boutique small-cap investment manager, Vice President at Deutsche Bank and as Management Consultant at KPMG. Alyx is also an Investment Committee Member of a Private Family Office. He started equity investing at the age of 15 with the early resolve to become a professional investor.
Kernow, founded in 2019 by Edward Hugo and Alyx Wood, has been certified as a B Corporation by B Lab. This means the firm meets the highest standards of social and environmental impact. Kernow delivers its focused strategy in both hedge fund and tailored segregated mandate formats.
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Kernow Asset Management is an investment manager focused on All-Cap UK equities. The team around Alyx Wood seeks opportunities with highly asymmetric return characteristics where the investment thesis is differentiated relative to consensus.
Kernow operates in the widening market gap between short-term quant-orientated traders and closet indexers. The strategy uses analysis of fundamentals and catalyst-driven mean reversion to capture contrarian alpha from UK equities. The result is a concentrated and directional portfolio o ...more
