We are a London-based independent “multi-boutique” asset manager, founded in 2009. Goodhart’s mission is to be recognised for our commitment to investment excellence – to be a trusted partner for both sophisticated institutional investors and exceptional investment teams.
Goodhart offers a range of strongly differentiated investment strategies. We partner with investment teams that share our commitment to investment excellence and fit with our investment philosophy and culture.
Goodhart was formed through the management buyout of the institutional multi-manager business of WestLB Mellon Asset Management, part of BNY Mellon, in 2009. As a multi-manager, the Goodhart team developed an innovative range of funds, with a genuinely investment-driven approach that focused on identifying profitable themes, and specialist managers to exploit them. Our innovative approach and strong performance was recognised with a number of awards. We were one of the few multi-managers to make an absolute return for clients in 2008 with our Global Long-Short Equity Fund, and we pioneered the concept of absolute return bond investing with the launch of a UCITS vehicle called the Target Return Fund, in 2007. We launched our first single manager strategy in early 2011 (the Hanjo strategy).
In 2012 we took the strategic decision to evolve into a “multi-boutique asset manager” in order to work more closely with investment teams that share our investment philosophy and values. We shut-down the multi-manager business. Goodhart’s clients continue to benefit from the experience and infrastructure developed as an institutional multi-manager. We work with investment teams that we believe are exceptional, and we only offer strategies that are genuinely investment-driven.
Most significant in terms of Goodhart's multi-boutique partnerships is the direct investment in Asset Value Investors (“AVI”) in 2015. AVI invests only in asset-backed listed securities trading at discounts to net asset value, and the investment team apply this approach in the management of its global equity, Japan equity and family-backed equity strategies. Founded in 1985, AVI has consistently applied this same investment approach for nearly 4 decades.
In 2018, Goodhart launched the Volunteer Park Capital Fund ("VPC") which, during its investment period, provided capital to private equity and debt managers. VPC completed five deals altogether, comprising two "GP stake" equity investments and three "GP financing" investments, where VPC provided non-dilutive financing to the GP.
In 2021, Goodhart launched the Ganbaru Fund on its Longitude Fund SICAV-SIF platform with Granmiznar Limited appointed as Investment Advisor. The strategy is an all-cap evolution of the Hanjo Fund - now soft-closed – and can invest across a broader universe of Japanese companies.
In 2023, Goodhart announced a strategic relationship with Global Opportunities Trust plc. ("GOT") through which Goodhart introduces opportunities in the private markets to GOT. As part of this strategic relationship, Goodhart also provides investment sub-advisory services to assist GOT in managing a global listed equities mandate and associated FX arrangements.
Also in 2023, Goodhart launched the Dartmoor European Discovery strategy. An in-house team adopt a fundamental stock picking approach to investing in listed Pan European companies with a quality / value style.
This Law originates in a paper delivered by economist Charles Goodhart in 1975. Goodhart’s Law became well known in the 1980s as an explanation for why the British Government’s attempt to control inflation through the use of monetary targets failed. Historically there had been a high correlation between money supply and inflation. So Chancellor Nigel Lawson decided to publicly set targets for money supply growth in order to control inflation. But when the “measure” became a “target” the relationship broke down.
We think Goodhart’s Law is relevant. It cautions us to really think about the relationship between cause and effect, and to not just accept that what has happened before will repeat itself. It also suggests that we will only generate exceptional returns for clients if what we do is different. We need to identify opportunities that cannot easily be exploited by everyone else.
For the avoidance of doubt, Charles Goodhart and his family do not endorse or have any financial interest in Goodhart.
“When a measure becomes a target, it ceases to be a good measure”