Experts at London-headquartered Marylebone Partners, the investment manager for the Majedie investment trust, discussed the trust, outlining top holdings and stock picks, at a media event attended by WealthBriefing this week.

The manager of Marylebone Partners – which oversees the London-based Majedie invetment trust – echoes views of other wealth managers by taking a positive view for emerging markets in 2026, and expects them to beat developed markets. 

Dan Higgins, investment manager at Marlebone, commented as Majedie issued results for its financial year, showing that in its first quarter, the net asset value (NAV) of its investment trust rose by 4.3 per cent, with a positive return in each month, despite volatile conditions.  

Marylebone Partners manages a “liquid endowment” strategy for Majedie, which holds a 7.5 per cent equity stake in Marylebone.

The liquid endowment approach includes a mix of specialist funds, direct investments and a focused portfolio of listed equities for long-term capital growth and a 3 per cent dividend. It aims to deliver annualised total returns of at least 4 per cent above the UK consumer price index (CPI) over rolling five-year periods. Since Marylebone’s appointment in 2023, NAV total return has annualised at 10.6 per cent and share price total return has annualised at 15.1 per cent.  

Higgins said the portfolio is structured on three components: external managers (allocations to funds run by specialist managers); direct investments (high conviction public equities); and specialist investments.

The trust does not invest in private equity, real estate, or infrastructure, he added. “It also has a bias towards UK and European stocks,” Higgins said and is invested in emerging market stocks. While the US represents 67 per cent of the MSCI ACWI, about two thirds of Majedie’s equity exposure is targeted outside the country. “Although the US has outperformed other markets, everything in the US is more expensive,” he said. Higgins has zero exposure to the Magnificent 7 – Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla – and is invested in out-of-favour equity sectors such as biotechnology and software.

Like other investment managers, Higgins expects emerging markets to outperform developed markets in 2026.

The biggest contribution to NAV in the first quarter of Majedie’s financial year came from the external managers category. Two funds – a European-centric manager and a biotech specialist – delivered outsized returns. Top holdings in the strategy include London-based hedge fund Helikon Long/Short Equity Fund, China specialist fund Perseverance DXF Value Feeder Fund, US-based hedge fund manager Paradigm BioCapital and Contrarian Emerging Markets Fund.

The direct investments category also had a strong quarter, led by its position in copper equities and a handful of European stocks, Higgins continued. The single largest contribution came from Majedie’s holding in the Global X Copper Miners exchange-traded fund (ETF). Copper is essential for renewable energy, acting as a cornerstone material for solar, wind and electrical grid infrastructure due to its superior electrical conductivity. The strategy also gained from its investment in the UK’s tech firm Computacenter. The Scottish-headquartered Weir Group – an engineering solutions provider specialising in the mining and minerals tech markets – is another top holding, Higgins said.

For special investments, performance over the past three months was strong at Orizon, a Brazilian waste-management business, Higgins continued. A co-investment in Oxford Biomedica also performed well. Meanwhile, an investment in the uranium sector retraced earlier gains but has subsequently recovered.