What is Top Stocks?
An open-ended mutual equity fund designed for long-term investments. The recommended term of investment is 5 - 7 years. The goal of the investment policy is to provide certificate holders with long-term appreciation of share certificates through investments in a concentrated portfolio of stock traded on mature stock markets (especially in the US, Canada and in Europe). This goal is achieved by active individual stock picking for long-term appreciation, while the share of stock in the portfolio may range from 80% to 100%. Available currency hedging instruments will also be used to achieve this goal.
Investment strategy
The higher concentration of the portfolio is due to the fact that the fund’s portfolio usually represents around 25 different investment ideas. One of the investment ideas usually means an investment in one picked stock, in several small cases the investment is made in more stocks. The weight of individual investment ideas is usually about the same.
Due to the significant representation of shares in the portfolio and the high portfolio concentration, the value of the investment may indicate high short-term volatility. A low asset turnover is achieved given the emphasis on the higher portfolio concentration and the longer investment horizon of individual investments.
A comparison of regular monthly investment in the fund with a one-off investment
Annualized return since the start of the fund's investment (28.8.2006 - 31.8.2024)
Blue - regular investment
Red - one-off investment
Stock Picking
Picking of individual equity titles is guided by the goal to achieve a regular annual positive appreciation in Czech crowns while retaining the long-term investment appreciation potential for certificate holders (which in practice means, for example, that the manager does not decrease the share of stocks during the year only because he has already “made money”). It also means that the fund manager does not try to hedge his bets against the composition of some stock index, the primary goal is the absolute appreciation of individual stocks.