Altor Alpha Fund

The Altor Alpha Fund is an active fund that seeks investment opportunities offering commensurate returns for the risks undertaken. The flexible, multi-strategy mandate allows for opportunities to be pursued across a range of sectors and across a variety of investment structures.

The investment manager undertakes extensive due diligence in understanding the investments it seeks to deploy capital in, and looks at opportunities which exhibit the following:

• A near term catalyst;
• Strong business moat;
• Strong macroeconomic thematic;
• An experienced management team;
• Superior earnings or revenue growth momentum; and
• Attractive valuation

The Fund is catalyst driven to avoid value traps and to track execution by management. The investment team co-invests in the Fund with our investors and are committed to delivering on absolute returns each year.

The investment team believe the risk of investing in large conventional companies will continue to increase as disruptive technologies erode traditional markets. The Fund will not invest in standard industry plays and is not beholden to index-tracking, maintaining “relative performance” or portfolio weightings. The investment team remains flexible to assess value in all sectors.

The investment team have a proven track record in micro-cap and small cap investing and nurtures strong relationships while securing access to exclusive opportunities.

What we stand by:

Protect the Downside – We seek to understand the downside before investing and to minimise this risk through multiple processes.

Stick to your Knitting – We do not believe we can be experts in all assets however we can be specialists in niche alternate assets.

Follow the Process – Repeatable investment process to identify opportunities in inefficient markets.

Invest with Patient Capital in Strong Thematics – provides superior returns through market cycles.

The Fund undertakes a quantitative and qualitative due diligence before making the decision to invest in a particular company. This includes financial analysis, industry analysis and in-depth people analysis which is a review of directors and senior management.

The investment team has a number of investment due diligence phases that have been built over extensive learnings and time in capital markets (including a number of investment cycles).

The investment team use a number of fundamental and technical filters to seek out potential opportunities into the initial phase. Other opportunities are generated by deal flow from the manager’s excellent network of specialist small company corporate advisers and stockbrokers across Australia. The manager has built strong relationships with a number of these advisers to ensure quality allocations in deal flow.

Once the manager has run an initial phase review on target companies, they are then subjected to a strict financial analysis process to ensure they meet certain financial health criteria.

The investment team typically meet with the directors or senior management of each company. Their track records are then examined and channel checks are conducted within the manager’s trusted network to verify.

Only after conducting appropriate financial and qualitative analysis will the Fund begin accumulating shares in a particular company. Positions are closely monitored to ensure it is adhering to its stated objectives and timeframes.

The investment team will remain actively engaged in helping and providing strategic, financial and capital markets advice to investee company management. The team will actively seek to introduce them to merger opportunities, potential capital raising partners, and complimentary opportunities that may assist them to grow faster.

Since Inception (1 March 2019), the Altor Alpha Fund has returned 280.4% (80.12% p.a.) net of fees, as at 31 August 2022.