5AM Capital Global Equity Fund
We are a quality-focused, high-conviction global fund with a long-term focus. The 5AM Capital strategy is focused on capital preservation and growth, via owning 15-30 of the world's best businesses.
The 5AM Capital Global Equities Fund is a long-term, absolute return focused fund that invests in high-quality global stocks with durable competitive advantages. The fund aims to achieve double-digit returns per annum net of fees, while minimizing the risk of permanent capital loss. It primarily focuses on companies with predictable revenues, strong balance sheets, and durable competitive advantages, often operating in monopoly or oligopoly segments. The fund's portfolio is focused on the infrastructure, technology, and healthcare sectors and does not invest in banks or resources.
Our 5AM Capital Global Equities Fund invests in listed equity markets including North America, Europe and Asia-Pacific. The Fund's strategy is indifferent to the constraints of any benchmark and has an absolute return focus. Our primary focus is high quality global stocks with durable competitive advantages.
The Fund will generally hold between 15-25 long positions which we consider provides an appropriate amount of diversification, prospect for alpha and aligns with our long-term focus. The Fund has broad discretion to invest across various liquid asset classes. The median market capitalisation of the Fund’s long holdings is typically in excess of $1 billion.
Investment Objective
To achieve attractive risk-adjusted returns over the medium to long term, while minimising the risk of permanent capital loss. The Fund aims to deliver double digit returns per annum net of fees over the economic cycle. Returns reaching this target are not guaranteed. The Fund will aim to achieve this objective by investing predominantly in high-quality global listed equities (this may include some Australian equities).
The 5AM Capital Global Equities Fund invests globally including North America, Europe and Asia-Pacific.
We identify high-quality, long-term durable, growing, and phenomenally managed businesses. Ideally, these businesses are, or are on their way towards, winning a segment monopoly or oligopoly. Often these businesses have the following attributes:
- Predictable revenues and earnings
- Ability to invest significant amounts of capital in their business at high rates of return
- High operating margins and free cash flow metrics over time
- Strong balance sheet
- Durable competitive advantages
- Range of prospects for the company’s next leg of growth
- We look to take advantage of market inefficiencies and buy positions when there is a deep discount to intrinsic valuation.
The Fund's strategy is indifferent to the constraints of any benchmark and has an absolute return focus.
Our long sector exposures are dominated by infrastructure, technology and healthcare companies as these contain characteristics aligned to our monopoly-oligopoly investment strategy. Within these sectors we concentrate investments in our higher conviction business models including:
- Online Classifieds
- Communications & Digital Infrastructure
- Essential Business Software
- Testing & Certification
Our 5AM Capital Global Equities Fund portfolio will generally hold between 15-25 long positions which we consider provides an appropriate amount of diversification, prospect for alpha and aligns with our long-term focus.
The Fund has broad discretion to invest across various liquid asset classes. We may short-sell or utilize other hedging techniques to pursue optimisation of investment returns whilst attempting to preserve capital. The median market capitalization of the Fund’s long holdings is typically in excess of $1 billion.
5AM Capital is a Sydney-based privately owned boutique investment management company. 5AM Capital was established to provide compelling risk-reward investment opportunities to wealthy families and wholesale investors with a focus on absolute returns, capital preservation and growth in high-quality global equities.
Our Track Record
We have an impressive global equity track record.
5AM Capital has delivered a 15% annualised return since inception1 with an average defensive 20% cash weighting.
Previously, Sam delivered a 30% p.a. compounded net return during the 2017-2021 year period that he was Chief Investment Officer for a substantial family office2.
We remain confident our strategy, stock-picking and portfolio construction will continue to deliver strong risk-adjusted returns.
1Performance from 1st July 2022 to 31st August 2024 (operated under an IMA structure for clients up to 1st Dec 2023).
2 Listed equities dollar weighted return (IRR) and converted to AUD for the period 06/2017-12/2021.
Prior to founding 5AM Capital in 2022, Sam had 16 years of investment and finance experience - including Family Office, Listed and Unlisted Global Equities experience.
Sam has five years of family office investment experience as Chief Investment Officer and Investment Committee member across two family offices managing significant intergenerational long dated capital.
Prior to this, Sam enjoyed a successful 11-year investment and investment banking career with Macquarie Capital in New York and Sydney where, amongst many other learnings and competencies, he developed a strong appreciation for businesses with long dated durable revenues and high margins.
Sam holds a Combined Bachelor of Commerce and Laws from UNSW. Sam has held seven board directorships across portfolio companies and non-for profits.
Tom is a passionate investor with 10 years of personal investing experience including his own investment podcast series. He holds an MBA from the University of Oxford with Distincition, has worked in management consulting and strategy within a large, global software business.
Tom previously worked in the strategy team of a large (US$25bn+), high growth Australian software company (Canva) focused on M&A, due diligence, modelling and growth strategy. Prior to this, Tom worked at L.E.K. Consulting, where he worked across a range of industries undertaking strategic, vendor and commercial due diligence (VDD & CDD) for private equity clients.
He holds an MBA from the University of Oxford with Distinction and a Bachelor of Chemical Engineering from the University of New South Wales as a Co-Op Scholar, receiving the Lyceum Prize for 1st placed thesis.
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