“Redpoint employs a structured (rules-based) management strategy, which seeks to construct a representative portfolio of better quality companies that provides a return broadly comparable to that of the benchmark on an after fees basis.”

Strategy overview

redpoint employs a structured (rules-based) management strategy, which seeks to construct a representative portfolio of better quality companies that provides a return broadly comparable to that of the benchmark on an after fees basis.

The approach is designed to provide a model portfolio for implementation as an SMA with low turnover, appropriate risk controls relative to the benchmark, and comparatively lower costs. redpoint’s selection bias towards quality companies is expected to give the portfolio a slight defensive tilt.

This is anticipated to provide a modest outperformance during periods of market stress but marginal underperformance when speculative stocks are in favour. This slight bias is redpoint’s preferred method for sensibly allocating capital given the strategy is constrained to holding less than half the stocks in the benchmark universe.

The strategy at a glance

  • Diversified portfolio of Australian industrial stocks
  • Quantitative investment approach
  • Low turnover portfolio
  • 30-40 holdings on average
  • Access to an experienced investment team
  • Focus on delivering income and capital growth

The following video features redpoint’s CEO Max Capetta outlining the rationale for investing in Australia’s industrial stocks.