Investment Approach

We rigorously benchmark our investment performance and have delivered higher risk-adjusted returns for our investors. As at the end of March 2020, Fund #1 delivered a total return (net of fees) of 20.63% since inception, outperforming the S&P/ASX Small Ord Accumulation Index by 47% over that period.

Our goal is to deliver value to investors over market-based benchmarks. Performance is measured against specific benchmarks that have been communicated to investors.  Over time, we aim to optimise long-term returns and maximise the Sharpe ratio (i.e. risk-adjusted returns) of the portfolio, net of costs. We aspire to provide equity-like long-term total returns, but with significantly less risk.  We have demonstrated success in doing so in Fund #1 —with substantially lower volatility and better returns than the market-based benchmark.

Our approach is the strategic asset allocation between in-house direct investments in special opportunities and the active management returns from our third-party manager investments.  The strategic asset allocation is one which we believe maximises expected risk-adjusted return for a passive asset allocation; the active management we provide through third-party manager selection is designed to produce outperformance uncorrelated to financial markets.  Historically, this has helped us deliver strong steady returns to our investors.