After "selling quite a lot" of stocks that were "approaching, at or slightly above what we estimated as their fair or intrinsic value" during January and February, the Nomura Global High Conviction fund proceeded to buy most back at rock-bottom prices as the coronavirus crisis led to steep share price falls.
Manager Tom Wildgoose said his $23m fund had been "left in a great position" as stockmarkets across the world began to tip into bear-market territory amid increasing concerns over the impact of Covid-19.
Many equity markets, including the US blue-chip S&P 500, had peaked at all-time highs by 19 February, as 2020 began in a bullish mood.
However, the subsequent declaration by the World Health Organisation that Covid was a pandemic, and the ensuing lockdowns implemented by governments led to heavy losses. The broad MSCI World index slumped by a quarter over the following month.
Nomura's head of equities Wildgoose said that going into the crisis, his fund had amassed a cash weighting of 8%, allowing him to switch into buying mode as prices fell. The fund is now almost fully invested.
"We haven't really swapped or switched stocks very much - there was only one or two that we actually sold," the manager explained.
"Mostly it has been reinvesting into the companies that we already own - we know them, we know they are high quality, we have a good handle on what the fair value is, so when the price comes down we can buy."
Those firms were largely listed in the US - by far the fund's largest geographical weighting at 72%.They included payments enabler Mastercard, which is the fund's largest position at 7.4% as at 31 March.
Wildgoose called Mastercard "a great company", noting that it was likely to benefit in the long term from lockdown buying habits, "as people transfer more of their spending away from cash and into cards".
The share price fell by as much as 41% to just above $2. "You don't often get to buy such a great company at such a cheap price."
Meanwhile, water heater manufacturer AO Smith slipped by 28% despite having a stable US business alongside a growing one in China.