Our Approach

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​We believe success is achieving long-term sustainable returns throughout different economic cycles. To do this we aim to uncover the simple but rare combination of outstanding management and innovative technology that is held back by a shortage of funds.

We can find these opportunities by focusing on the small end of the market, which many investors and institutions perceive as too risky and therefore ignore. When judged as a whole, there is no denying the higher risk inherent in this market segment, however, we believe that with a disciplined approach it can offer opportunities that will provide superior risk adjusted returns.
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Our approach begins with top-down analysis, as we believe the macro environment is equally important as the micro factors in a company’s success. Once we identify the themes and sectors that are most likely to benefit under the macro conditions we see unfolding, we begin our screening process. We then employ extensive due diligence, capital structuring and active monitoring to identify, enter and manage investments that we believe will provide superior risk adjusted returns. 

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​​Our Philosophy

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​Investing without an investment philosophy is like sailing a ship without a rudder - destined for the bottom.
​This is why we have a core set of beliefs in place to guide us.

The Australian small cap sector is inefficient

Small companies attract lower institutional investment, as many cannot invest in this sector due to mandates. Additionally, sell-side analyst coverage drops off down the market cap spectrum. This, combined with lower news flow that is typically associated with small caps, leads to a lack of attention and information.
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Small caps are also much harder to value using financial models, and this alongside the lack of information, further pushes away investors, increasing market inefficiency. 
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Small caps can offer higher returns ​

Every great company had a humble beginning, and whilst the greatest returns can be achieved by finding great companies at their beginnings, it is also the hardest time to uncover them. With thousands of small companies looking for investments, a higher degree of unknowns and inherent market inefficiencies, many investors find it too difficult or risky to invest in small caps. However, we believe, that when managed appropriately small caps can offer superior risk adjusted returns. This is because small caps can be nimble and innovative, as their small size allows them to be adaptive and disruptive, which is also why they often offer greater exposure to emerging thematics that have accelerated growth profiles.
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Think like a philosopher
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Philosophy’s greatest gift has never been some answer or a truth, but rather the knowledge of how to think. We seek to employ this knowledge by being active critical thinkers, this means being independent and contrarian thinkers; questioning everything – especially our own biases; knowing what we don’t know; thinking creatively; judging all ideas on their merits, not on where they came from; and being open minded to new ideas but unwavering with we know to be true.​
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Management is
​key

​We rather invest in a mediocre business run by exceptional management than invest in an exceptional business run by a mediocre management (of course, we look for both to be exceptional). After all, even the fastest ship cannot make up for the navigational failures of its captain.