SIF is a concentrated, Australian equity smaller company focused fund that invests predominantly long but can effectively short when suitable opportunities are found.

Investment Objective

Smallco aims to provide good performance in SIF through actively looking for high quality, smaller companies whose share price is significantly less than what Smallco considers to be the true underlying value of the shares.

Investment Style

Smallco manages SIF with a “Growth at a Reasonable Price” bias employing a bottom up approach with a strong focus on earnings direction and risks.

We are strong believers that earnings are the key driver of share prices and that more accurate forecasting of earnings will drive greater and more consistent outperformance.

Focus is placed on identifying stocks through fundamental analysis which are likely to exceed consensus earnings expectations or stocks which are out of favour and we are confident will at least meet earnings expectations.

Smallco actively looks for high quality companies whose current share price is significantly less than what it considers to be the true underlying value of the shares.

Investment Universe

Smallco invests mostly in smaller Australian listed companies, but may invest up to 20% of the fund in larger Australian listed companies and some cash. The manager classifies a smaller Australian listed company as a company outside the S&P/ASX 100 Index at the time the fund makes its initial investment.