Reed Investments is a lesser-known investment management company founded by Phillip Reed. It utilizes fundamental analysis and a long-term investment horizon to invest in publicly traded stocks globally. This article provides an introduction to Reed Investments, summarizing its key investment strategies, portfolio, and performance.
Reed focuses on long-term, fundamental-driven global equities investing
Reed Investments employs a long-term, fundamental-driven investment strategy focused on global equities. It seeks to identify and invest in high-quality businesses with durable competitive advantages, consistent earnings power, and sound financial strength. The investment time horizon is typically 3-5 years or longer.
Reed runs concentrated, high-conviction equity portfolios
Reed Investments tends to run concentrated stock portfolios consisting of 20-25 companies on average. This allows its best investment ideas to drive portfolio performance. The concentrated approach also enables Reed’s small investment team to conduct in-depth fundamental analysis on each holding.
Reed’s portfolio exposure is global across sectors
While based in the U.S., Reed Investments invests globally across developed and emerging equity markets. Its current portfolio has exposure to industries like financials, healthcare, consumer staples, technology, industrials and materials. In terms of regions, Reed has investments in the U.S., Western Europe, Asia Pacific ex Japan, Latin America and Canada.
Reed has delivered solid long-term returns for clients
As a long-only, fundamental equity investor, Reed Investments has delivered steady gains for its clients over the long run. For example, its International Equity Composite has returned 9.4% annualized since its 1993 inception compared to 6.2% for the MSCI EAFE benchmark. While volatile at times, Reed’s long-term track record illustrates the success of its high-conviction, buy-and-hold approach.
In summary, Reed Investments applies a long-term, concentrated and fundamentals-focused investment strategy to global equities. It runs high-conviction, concentrated portfolios invested across sectors and regions. This disciplined approach has generated solid long-term returns over Reed’s 30+ year history.