Firmin-Didot,aCitywireAAA-ratedmanagerwhodreamtuptheconceptonabeachinIndia,sayshisexperienceofentrepreneursledhimtobelievethatcompanieswithadominantshareholder,whohadatrackrecordofatleasttenyears,“wouldalwaysoutperformconventionallygovernedcompanies”。

Fewfundmanagerswoulddisputethevalueofgoodmanagement;Firmin-Didotmerelytakesthatapproachonestepfurther。

Manyfirms,heargues,aretoobureaucratictodeveloptheideastheirstaffgenerate,butwhenagoodentrepreneurismakingthebigdecisions,theyactfast,and“95%ofthetimetheyareright”overthelongterm。

Theselectionprocessinvolveslookingatthe3,000-oddcompaniesworldwidethathaveasingleshareholderowning20%-80%ofthestockandnarrowingthemdowntothebest1,500。

Thosewithareasonablefreefloatandlittledebtmakethefinalcut,andthefinal60to90thatendupintheportfolioareselectedbasedontheirp/etogrowthratio。

FavouriteentrepreneursincludeMasayoshiSon,CEOofSoftbank,whosesharepricehasrisenonaverage38%ayearforthepast25years,andVincentBollore,thecorporateraiderwhocontrolsHavas。

Asof28October,thefundhasbeenopentoUKinvestorsforthefirsttime,thankstothelaunchofAxaIM’sSmartfundplatform。

Buttheywillhavetoactfast:sinceApril2004,whenAxaIMbroughtitin-house,thefundhasjumpedinsizetomorethan€400m。

It’llsoonreachcapacityat€1bnto€1。

5bn。

Contact:0845-3003475

AxaTalentsfundtopsixholdings

Nameofholding%ofassets

FinDeL’OdetEur169。

18%CoscoHoldings-H-5。

22%CendantCorpCom3。

53%HyundaiMobis3。

36%InterParfumsInc3。

09%ImmsiSpA2。

63%

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