Schroder GAIA Sirios US Equity

The Schroder GAIA Sirios US Equity fund employs a fundamental, research-driven approach, focusing on U.S. mid and large-cap companies with the flexibility to invest across the capital structure. Founded in 1999, Sirios Capital Management manages $755 million in assets, with $696 million in hedge fund assets and $59 million in long-only strategies. The UCITS launched in 2013 and currently manages c. $200m. The firm, based in Boston with a team of 16 employees, including 10 dedicated investment professionals, applies a bottom-up process across five key sectors: industrials and materials, financials and real estate, healthcare, technology and communications. The strategy emphasizes identifying attractively valued companies with good growth outlooks, utilizing proprietary models for comprehensive analysis. While primarily U.S.-focused, the fund selectively invests in Europe and Asia. Additionally, the fund has shown an ability to opportunistically invest in fixed income, particularly during periods of market dislocation, as seen from 2020 to 2022. Investment ideas are driven by sector heads who conduct active analysis on 30-50 stocks per sector, making 15-20 recommendations at any given time. The fund does not focus on energy or utilities due to not suiting their investment process and philosophy. John Brennan is the founder and PM, and collaborates with sector heads to size up the best ideas for core positions. The fund targets long positions in companies with strong growth potential, attractive valuations, and favourable sector-specific trends. These companies often operate in under-penetrated markets or have significant pricing power, with typical holding periods of 3-5 years. On the short side, the fund focuses on overvalued companies, especially in sectors experiencing speculative excess or inflated prices. These short positions can also be more tactical, with shorter holding periods, allowing the fund to capitalize on market corrections or sector-specific downturns. The fund also uses indcies for portfolio hedging and to manage broader exposure. The fund typically maintains a gross exposure of 100-175% with a cap at 200%, and currently runs at 152% gross and approximately 55% net exposure.