Equitable Investors Dragonfly Fund
Investing in attractively priced businesses with sound growth prospects or strategic value.
We aim to deliver returns that exceed the cost of capital.
Performance is measured against the yield on the Five Year Australian Government Bond +5% pa.
We aspire to look in all directions for opportunities. A special characteristic of the dragonfly is its incredible vision. Scientists believe it can see more colour than humans. The dragonfly’s eyes consist of up to 30,000 facets. Each facet points in a slightly different direction, apparently enabling dragonflies to see in all directions at the same time.
May 2022: ""A very significant part of my philosophy has to do with managing your psychology. Markets are about the psychology of others. When are they panicking? When are they greedy? But you have those same flaws or those same potential flaws… if you can rule those extremes out, you’ll navigate the markets well” - Seth Klarman Full Report
ABOUT THE FUND
The Fund is an open ended, unlisted unit trust investing predominantly in ASX listed companies. Hybrid, debt & unlisted investments are also considered. The Fund is focused on investing in growing or strategic businesses and generating returns that, to the extent possible, are less dependent on the direction of the broader sharemarket. The Fund may at times change its cash weighting or utilise exchange traded products to manage market risk.
The Fund is only available to "wholesale clients" within the meaning of the Corporations Act 2001.
The Fund aims to provide Investors with medium to long term capital growth by investing in attractively priced businesses with sound growth prospects or strategic value.
The Fund’s benchmark is to exceed the annual yield on Five Year Australian Government Bonds by more than 5% per annum. This benchmark is representative of the level of return Equitable Investors believes an investor may require as compensation for taking on the risks inherent in equity investment.
The directors of the manager have approximately 50 years of combined professional experience in investment markets, focused on those market segments in which higher total returns are most likely to be found, being micro-to-mid cap listed companies, larger strategic opportunities, unlisted growth opportunities & mezzanine or alternative financing. The Fund’s portfolio manager has been a key member of a highly-regarded investment management team for the past four years and prior to that led well-regarded equities research teams.
The Fund is positioned to pursue opportunities not typically on the radar of mainstream investment managers, being predominantly micro- to-mid caps but also alternative investment forms (pre-IPO, corporate debt, hybrid offers & unlisted equity) sourced from an extensive network that may not be widely accessible. The fund has a deliberately expansive investment universe and will invest without regard to free-float weighted sharemarket indices.
The manager believes in maintaining frank and open dialogue with the entities in which investments have been made. The manager will offer support & constructive feedback, with the ultimate focus remaining always on maximizing shareholder value. Where there are opportunities to leverage relationships and develop strategic initiatives for the benefit of the investee it will seek to do so. We believe this active approach can enhance returns.
The manager is devoted to understanding the business model, the market opportunity and the competitive forces of potential or current investments. The manager considers people to be the key assets of most businesses and therefore seeks to know the people in and around the company. The manager seeks to build a proprietary “mosaic” of information & seeks relevant information from a multiplicity of conventional & unconventional sources.
Alignment of Interests Equitable Investors believe in having a strong alignment with the investor base. The founder intends to place his own equity investment capital into Equitable Investors-managed funds. Equitable Investors’ intention is that at least 50% of performance fees shall be paid in units in the Fund in the first three years of operation.
INVESTMENT STRATEGY & PROCESS
Quarterly - June 2021
Monthly - May 2021
Monthly - April 2021
Quarterly - March 2021
Monthly - February 2021
Monthly - January 2021
Quarterly - December 2020
Equitable Investors Pty Ltd is licensed as an Australian Financial Services Licensee (AFSL No. 505824)