Managed Portfolio Series Tremblant Global ETF (TOGA)

The Managed Portfolio Series Tremblant Global ETF (TOGA) is an actively managed fund that invests in equities across developed and emerging markets, with a bias toward companies that exhibit both reasonable valuation and quality characteristics. The manager constructs a concentrated portfolio of typically 40–80 global holdings, maintaining flexibility to rotate between regions and styles as valuations and fundamentals evolve.

Global equity investing with a disciplined approach

Most U.S. investors live in a home-country bias bubble, overweighting domestic stocks and underappreciating value available in international markets. TOGA is designed for investors who believe that good companies exist everywhere — not just in the S&P 500 — and who want exposure to both developed markets (Europe, Japan, Australia, Canada) and the faster-growing but riskier emerging markets (India, Brazil, Mexico, South Korea, Taiwan, and others).

The fund’s manager (Tremblant Capital) applies a disciplined screening process: identify companies with durable competitive advantages (brand strength, switching costs, proprietary technology), sustainable profitability measured by return on capital, and valuations that appear reasonable relative to peers or history. The process is not mechanical; the manager synthesizes quantitative screens with qualitative judgment about management quality, industry dynamics, and the macroeconomic cycle. The result is a concentrated portfolio that might hold 50 positions where a typical global index fund holds 2,000 or more.

Navigating developed and emerging-market cycles

TOGA’s global scope creates exposure to multiple independent business cycles. When U.S. equities are expensive and slowing, Japanese or European companies might offer better value. When emerging markets are in boom, small-cap Indian tech companies might compound rapidly. When developed markets recover from recession, European banks and industrials often rebound sharply. A static allocation to each region would leave money on the table.

Tremblant’s manager rotates between regions and styles depending on where valuations appear most attractive and fundamentals most durable. In years when developed markets offer better risk-reward, TOGA might be 70 percent developed and 30 percent emerging. In years of dollar strength and emerging-market opportunity, it might flip. This flexibility is a strength if the manager’s calls are correct and a drag if they are not.

Currency exposure is another complexity. TOGA owns stocks priced in euros, yen, rupees, and Chinese yuan. When the U.S. dollar strengthens, the dollar value of those foreign holdings declines even if the stocks themselves gain. When the dollar weakens, foreign holdings benefit from currency tailwinds. The fund does not systematically hedge currency; it accepts that currency moves are part of global investing. Investors who fear a weaker dollar should be aware that TOGA is an unhedged play.

Merits and hazards of concentrated active management

The concentration in 40–80 holdings is both the fund’s strength and its risk. Concentration amplifies the returns from successful picks and makes the manager’s stock-selection ability genuinely material. In a year where the manager identifies outperformers early — say, Vietnamese consumer stocks before a consumption boom, or Eastern European IT companies before a capex cycle — TOGA can substantially outpace a broad index. Conversely, a series of bad calls or bad luck (one or two large holdings suffer setbacks) can underperform for years, especially if the index is in a strong trend that rewards size and momentum over value.

Active global management also incurs higher costs than a global index ETF: higher expense ratios, currency-conversion costs, and potential tax drag from trading. These headwinds must be overcome by alpha (outperformance). In the past two decades, particularly during periods of low-volatility, large-cap, U.S.-centric bull markets, active managers globally have struggled to justify their fees. A manager must genuinely be skilled, not merely competent, to win.

Cyclical performance and timing risk

TOGA’s appeal is highest when international valuations are attractive relative to the U.S. and when emerging markets are in an up-cycle. In years when U.S. large-cap tech stocks dominate (as they did in the 2010s and early 2020s), TOGA’s value bias and geographic diversification will lag. In years when the cycle turns and valuations reset — U.S. stocks correct, international becomes cheaper and more compelling — TOGA can outperform sharply.

The fund benefits from a patient, multi-year investor who believes in the long-run efficiency of global markets and the manager’s ability to find and avoid value traps. It suffers with an investor who is timing the cycle or comparing performance quarter to quarter.

Research path for TOGA

Start by comparing TOGA’s rolling three-year and five-year returns to the MSCI World Index (its benchmark) and to other active global equity funds. Look at the fund’s geographic and sector exposures — are they materially different from the index, or are they closet-indexing with high fees? Review the fact sheet to see turnover and the manager’s commentary on recent allocations and conviction names. Are they making concentrated bets on specific companies, or are they maintaining market-like exposures with modest tweaks?

Examine which regions and sectors the fund has overweighted or underweighted during periods of outperformance and underperformance. This reveals whether the manager’s timing calls have been right, and whether you have conviction in future calls. Read the prospectus on how currency exposure is managed (or not), so you understand what happens if the dollar rallies or collapses. Finally, consider your own time horizon and risk tolerance: active global management is a multi-year wager on manager skill, not a shortcut to instant diversification.