Investment Style
Key Attributes of Smallco Investment Fund
A Focused Boutique
SIF is the only retail fund managed by Smallco Investment Manager Limited (Smallco). The benefit for investors is that Smallco's foremost focus is to provide solid investor returns through SIF.
The Smallco Sweet Spot
Smallco invests in smaller companies listed on the Australian Stock Exchange, particularly those in the ‘Smallco sweet spot' of $100 million to $500 million market capitalisation. Smallco believes that companies within this range are small enough to be relatively under-researched whilst being large enough to be feasible businesses.
Smallco's Commitment to Capacity
In line with Smallco's foremost focus - providing SIF with the best possible environment for good returns - inflows will be restricted similarly to 2007 when FUM were restricted at $200m.
The key advantage of restricting funds under management is to keep SIF nimble by reducing liquidity risk and reducing the time needed to establish or exit a given stock position. As at 31 December 2009 SIF had $75 million of funds under management.
Resources Allocated to Stock Analysis
In an attempt to further enhance SIF's returns the number of analysts was increased to four in July 2007 following the appointment of Andrew Hokin as a senior fund manager.
Smallco considers this to be a high number of analysts based on SIF's fund size but a necessary move to ensure that SIF is given every opportunity to perform well.
Key Personnel Co-Investment
A large percentage of the seed capital for SIF was contributed by two of Smallco's key investment personnel, Rob Hopkins and Bill Ryan. All investment professionals have significant personal holdings in SIF which means their interests are strongly aligned with those of investors.
Smallco - Short Selling
Short selling is essentially the sale of a share that is not yet owned. The expectation is that its price will fall over time so that it can be bought back later at a lower price.
Smallco can and does effectively short sell smaller companies listed on the Australian Stock Exchange. SIF uses this strategy moderately to enhance returns from traditional investment strategies such as 'long only' investing.
How to Invest
Please click on the buttons below to obtain a copy of the Product Disclosure Statement, which you should consider before deciding to invest.
