Lyrical Asset Management
Founded by two long-term friends, New York-based Lyrical Asset Management is a specialist boutique firm that focuses only on one way of managing money. Through carefully analysing only the cheapest 20% of shares across the world, Lyrical’s aim is to find the Gems Amid the Junk™.
The firm’s carefully constructed strategy has been used since 1996, with the purpose of unearthing good quality companies that are temporarily undervalued. It invests only in businesses with low levels of debt, high returns on capital and business models that it is confident it can understand.
Investment philosophy
The Curate Global Value Equity Fund invests in companies that are currently priced cheaply but have strong business models and, therefore, the potential to show high share price gains. The portfolio will look very different to the general market index as the Lyrical team seeks to identify shares:
- In the cheapest 20% of the market based on their price-to-earnings ratio.
- With a history of strong returns on capital.
- That have predictable profits.
- With business models that are understandable and durable.
- Not operating in sectors that are either highly cyclical or are being disrupted.
Track record
All of Lyrical’s funds follow the same approach of finding the best long-term investment opportunities amongst the market’s cheapest shares.
- The firm’s global equity fund uses an approach that has been in place and successfully delivering for investors since the late 1990s.
- Due to its focus on finding good companies in the cheapest part of the market, Lyrical’s funds provide investors with a unique combination of value and growth.
- By only investing in companies with business models that are both strong and easily understandable, Lyrical has managed to hold shares mainly in companies that deliver on expected profits and cash flows.
- Lyrical is very aware of being good stewards of investor’s money, and places high emphasis on engaging with companies to improve the ways in which they operate.
Meet the team
John Mullins
Portfolio manager John has been working in the investment industry since 2004. He considered becoming an academic, but felt the stakes were too low because while you can generate great ideas, they don’t get recognised outside of academia. When you are managing money, on the other hand, the quality of your ideas directly affects the outcomes investors see.
“The two things I love most in life are learning and competition. There’s no field that favours these traits more than investing.”
Dan Kaskawits
When he joined Lyrical in 2017, Dan was attracted to the discipline the firm showed in its approach, and the results that it was generating for investors. He believes that taking a long-term view and having more patience than the general market is a key trait in managing other people’s money.
“By only investing in higher quality companies amongst the cheapest stocks, you have a better chance of getting the fundamentals of an investment right. And if you get the fundamentals of a cheap stock right, you tend to make a lot of money.”
Andrew Wellington
Lyrical co-founder Andrew began working in the investment industry in 1996. He has always been a value investor, willing to take unpopular positions if that is where the evidence leads. Starting his own firm allowed him to put those beliefs into practice as he best saw fit.
“For me, there is no greater satisfaction than finding an overlooked or misunderstood company, and over time being rewarded with an exceptional return as the market eventually recognises what we first saw.”
Latest insights
Our handpicked managers regularly share their unique perspectives to keep investors informed and up to date.
Our handpicked managers regularly share their unique perspectives to keep investors informed and up to date.
