The strategy offers investors a style-neutral exposure to Australian smaller companies, predominantly those outside the top 100 ASX-listed companies by market capitalisation.
The strategy is an actively managed, long-only strategy with flexibility to enhance alpha through its ability to invest up to 20% of the Fund in mid-cap stocks outside the ASX-50 Index.
By investing in companies outside of the top 50 and limiting exposure to top 100 ASX-listed companies by market capitalisation, the Fund seeks to benefit from the concept of information arbitrage.
This refers to the fact that the largest companies tend to be very well covered by stockbrokers, reducing the opportunity to profit from information gained through research; smaller companies are often ignored and detailed research on these companies can uncover unrecognised value.
Tribeca approaches small companies investing by comparing the relative merits of a broad range of smaller companies and identifying those with a suitable degree of financial stability that demonstrates superior growth, or other attractive attributes.
Tribeca’s investment process aims to identify the market leaders of the future and will have a bias toward companies with relatively high quality and sustainable earnings streams.
The Fund at a glance
- A proven investment process that has been effective through a number of market cycles spanning 15+ years
- A focus on high quality companies that are expected to deliver superior returns in the long term
- Proprietary risk management tools used to manage overall portfolio risk
- Targeted outperformance1 of the S&P/ASX Small Ordinaries Accumulation Index of 5-10% p.a., before fees, over a rolling three to five year period, with an expected tracking error of 5-6% p.a.
1This is not a forecast and there is no guarantee that the Fund will achieve this return