Non-Benchmarked Portfolio

Our overriding aim is to provide investors with positive returns over the long-term regardless of the performance of the underlying market.

The composition of the individual investments within the Funds are likely to vary over time and be substantially different to the market and to most other retail funds available to investors. As such, the Funds will at times produce markedly different returns to the overall market.

No Size, Sector or Style Constraints

We take a stock-specific, bottom-up approach to investment and do not have a particular style bias. In order to maximise the number of potential investment opportunities the Funds' investment universe includes all companies listed, or about to be listed on the Australian Stock Exchange (ASX) regardless of their size or business sector.  

Despite the broad investment universe, we generally focus on smaller businesses believing they are easier to understand, simpler to value and more accessible to research. We also believe the opportunities for significant growth of well positioned, managed and resourced smaller companies is often greater than that of larger companies.

We generally look to invest in simple industrial businesses we can understand, with a history of profits and dividends, and which offer a predictable future earnings stream we are able to value.

Long-Term Investment Focus

Our investments are based on the ability to understand the business, meet the key management and have a clear comprehension of the business's value drivers and underlying valuation. As such, we consider face-to-face meetings with company management and site visits to be an important part of the investment process, and we spend considerable time conducting these meetings.

We take a long-term view of investments with the majority of the investments in the OPIS Capital Funds made on the basis of the expected returns to be achieved over 18 months or more.

Residual Cash Holdings

The OPIS Capital Funds' flexible investment mandate extends to the portfolios' cash holding, with cash being held until suitably attractive investments are discovered and purchased.

We therefore do not invest to manage a specific cash weighting but invest only when we believe the value equation is compelling. As such the Funds' cash weighting may vary significantly over time, depending upon the number of suitably attractive investment opportunities available.

Open Team Structure

Our flexible investment mandate extends to the investment team structure with individual investment team members able to research and recommend an investment in any companies they believe offer compelling investment value for the Funds. This open framework of responsibility facilitates the diversification of knowledge and responsibility, and therefore reduces our reliance on any individual member.

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