Cerutty Macro Fund

Our investment process

Macro Themes

We look for long term secular trends that are either obvious but still under appreciated in magnitude or have been caused by an underinvestment due to beliefs we feel are wrong.

Business Cycle

We have great respect for the business cycle and how it affects financial market liquidity and use this research to determine when to increase or decrease the risk profile of our portfolio.

Bottom Up

We conduct rigorous bottom up analysis to find the best stocks to express our ideas. Where we can’t find appropriately valued opportunities on the ASX we’ll look to invest in overseas opportunities.

“All greatness, after all, is rooted in risk”

– Albert Camus

Cerutty’s biggest differentiator is how we view risk. For us, creating a portfolio full of consensus ideas leaves us feeling exposed to asymmetric downside risk because if the ideas turn out to be right, much of the success is already in the price, but if the idea turns out to be erroneous there’s large downside potential as everyone rushes for the “exit door” at the same time.