Coaster Multi-Strategy Fund - Arrow Fund Class A
The Fund is an Australian Focused Equity Long Short, offering investors potential significant long-term returns uncorrelated to other markets. (For Wholesale Investors Only)
The Investment Manager relies on the experience of its portfolio manager Charlie Brown, to anticipate or react to catalysts which will lead to movements in equity markets and related instruments. Catalysts may be company earnings announcements, changes in economic conditions, brokerage upgrades/downgrades, management changes and regulatory change.
The Arrow Fund can invest in any listed securities with a focus on Australian securities for its investment universe. The Arrow Fund will purchase securities it believes will increase in value and short sell securities it believes will fall in value.
The investment philosophy is entirely discretionary and relies upon the Investment Manager’s skills to produce returns for investors.
The Investment Manager’s geographic focus is Australia. The Investment Manager may take exposures outside of Australia to the extent that the exposure is intended to mitigate risk or enhance return from factors external to the Australian market.
Whilst the Investment Manager’s primary strategy is focused on long/short Australian equities, the ability to retain discretionary powers to allocate funds across a number of other investment strategies and asset classes is reserved. These strategies may include, but not be limited to: convertible bond investments, portfolio hedging, equity related arbitrage and special situations (e.g. merger arbitrage, rights offerings, participation in international public offerings and placements, etc.).
The fund may purchase equities, units and trade in OTC and listed derivatives on equities, units trackers, funds and indices, with the view of generating short to medium term gains from trades.
Should the Investment Manager form an opinion that an asset will fall, or underperform another security, the Fund will also have the ability to “short sell” equities, units, trusts, trackers and funds, and trade in OTC and listed derivatives on equities, units, trackers, funds and indices. The use of short selling will enable each Sub-fund to profit from the underperformance of a stock, or other assets or instrument, and to hedge directional exposure of the portfolio.
The Investment Manager will have the discretion to expand this strategy to include companies listed on international exchanges outside of Australia.
When considering an exposure in an equity, or related instrument in the long/short equities strategy, the following factors may form part of the investment decision:
- Earnings and earnings sustainability
- Balance sheet composition and refinancing requirements
- Stock valuation in comparison to peer group and in historic terms
- Dividend policy and the sustainability of these policies
- Regulatory and operational environment
- Corporate finance activity
- Quality of management
- Price action and volume technical indicators
- Costs to maintain a short position in a stock and current short positioning
- Expected investor reaction to news flow (such as announced vs. expected earnings)
- Other exposures to the industry and market within the portfolio
This list is not exhaustive and subject to change.
Strategy Execution ‐ Other Strategies
When considering an exposure in an investment strategy that is not purely Long /Short Equities, the following factors may form part of the investment decision.
Convertible Bonds
The Investment Manager may trade convertible bonds when they identify terms and conditions within the prospectus that may affect the value of the bond or offer the Investment Manager an effective way of trading or hedging the shares of a given company.
Portfolio Hedging
Susceptibility of the portfolio to extraneous factors may be mitigated through the use of index futures, options, baskets of stocks, or similar strategies that reduce the portfolios exposure to market movements.
Equity Related Arbitrage
Where one of the underlying securities in the Investment Manager’s investible universe is interchangeable with another security or instrument, the Investment Manager may trade those instruments when the prices between them imply value may be realised by either holding, trading or arbitraging between them.
Special Situations
- For merger related deals - expected time scale, regulatory hurdles, expected shareholder reaction.
- For rights offering - the terms of the rights.
- For international public offerings and placements - corner stone investors and investor demand.
This list is not exhaustive and subject to change. Other factors specific to the strategy may be considered.
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Any information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs. Before acting on any information or advice on this website, you should consider the appropriateness of it (and any relevant product) having regard to your circumstances and, if a current offer document is available, read the offer document before acquiring products named on this website. You should also seek independent financial advice prior to acquiring a financial product. All financial products involve risks. Past performance of any product described on this site is not a reliable indication of future performance. Coaster Capital Pty Ltd is an Authorised Representative (CAR No. 001279156) of Quay Fund Services Ltd who hold Australian Financial Services License No. 494886. Wholesale Investor Disclaimer - Eligible Users: All information on this page is only intended to be accessed by the following persons: (i) ‘Sophisticated Investors’ or ‘Wholesale Clients’ as defined under sections 761G and 761GA of the Corporations Act 2001 (Cth) in Australia; (ii) ‘Wholesale Investors’ as defined in the Financial Markets Conduct Act 2013 in New Zealand; or (iii) persons who are not prohibited to access the Site or receive the information in their relevant jurisdiction under the applicable laws (each an “Eligible User”). By registering, you confirm that you are an Eligible User. If you are not an Eligible User, please do not proceed. No offer or advice: Nothing on the website should be construed as a solicitation, offer or invitation, or recommendation, to acquire or dispose of any investment or to engage in any other transaction. Coaster Capital is not providing any personal advice or recommendation regarding any financial products within the meaning of section 766B of the Corporations Act. No consideration has been made of any person’s investment objectives, financial situation and/or needs. Prospective investors should make their own enquiries and should seek all necessary financial, legal, tax and investment advice.
Coaster Capital is an investment management boutique that specialises in long short investing. Our mission is to generate outstanding long-term returns for our investors through the management of a range of new, agile and performant funds.
The Coaster Story
Coaster is an investment management boutique founded in 2019. The firm was established with a goal to design, develop, and manage a selection of exclusive, high-performing funds, with limited capacity. Importantly, the firm is 100 percent owned by our executive team who are invested alongside our clients in Coaster’s funds.
We seek to build hedge funds that leverage our specific areas of expertise and track records. We are focused on investing in areas where there is the opportunity for enduring alpha generation, and on working with experts that have demonstrated their ability over different business and market cycles.
Our strategies do not compete with one another.
While all our strategies are geographically or sector focussed, our investment teams collaborate when appropriate, participate in firm-wide risk discussions, and share a common investment infrastructure platform. This approach allows each manager to focus on its opportunities while having the benefit of other market perspectives.
For each strategy, Coaster seeks to ensure that our funds do not outgrow the opportunity (e.g. liquidity and capacity). As investors in our own funds, we ensure alignment of our investors’ interests with our own. Our approach is to maximise investment returns so that we are rewarded through our performance as opposed to assets under management.
Our History
While founded in 2019, the Coaster staff are all finance industry veterans with long successful track records of investing in equities and managing hedge funds.
Prior to establishing Coaster Capital, Charlie Brown and Alnoor Premji worked together at KIS Capital Partners for over a decade. The team were responsible for managing the highly successful KIS Asia Long Short Fund, which delivered 11.76% p.a. (after fees) from inception in October 2009 to April 2019.
Sam Brandenburg comes from a portfolio management background. Sam worked for BB Capital, a resources focussed family office.
Our Approach
We are pragmatic investors who specialise in long short investing. We understand that the alpha available to a given strategy is finite, and have deliberately limited the maximum size of each our funds according to the liquidity of their traded markets. We are active managers, unconstrained by indices or benchmarks.
Prior to Coaster Capital, Charlie was an owner and Portfolio Manager at KIS Capital Partners, a private funds management business, which managed approximately $300 million in funds under management for Australian and overseas investors.
Charlie also worked in sell-side roles at major Australian institutions, where he advised institutions, hedge funds and high-net worth clients. As a portfolio manager and investment committee member, Charlie brings to Coaster Capital an extensive knowledge of the Australian financial markets and Australian listed companies.
Sam has been involved with financial markets at BB Capital, a private family office, since 2005. At BB Capital, Sam was a Portfolio Manager and Resource Sector Analyst. Sam has extensive experience with financing both listed and unlisted resource companies.
Sam holds a degree in Civil Engineering and prior to BB Capital spent 10 years in project management delivering major building and civil infrastructure projects. Sam has also consulted to resource companies and government departments during the business case stage.
Alnoor has over 25 years in senior finance roles with both local and international experience covering accounting, operations, risk, integration, M&A, profit turnaround and change management.
Alnoor held senior roles at BNP Paribas including the Deputy CEO of BNP Paribas Investment Partners Australia where he was responsible for finance, operations, risk and compliance; as well as the Deputy CEO of BNP Paribas in New York, and COO and the Deputy CEO of Shinhan BNP Paribas AMC in Seoul, South Korea.
Alnoor is a registered member of CPA Australia and has a Master of Applied Finance.
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What sets us apart is the conventional wisdom that comes with the title; boutique fund managers. We are more nimble and less constrained when managing investors’ capital, and therefore have potential to produce better returns.
The Arrow Fund is an equity long short strategy that trades across all sectors and market capitalisations of the Australian stock market, this fund has a focus on consistent returns with low correlation to the Australian stock market.
The Dorado Fund is an Australian listed resource sector focused equity long short strategy, with potential for significant long-term capital growth and less correlation or drawdowns, typically related to long only resource stock investments.
Coaster Capital has the unique ability to offer investors access to tailored funds with limited capacity. Through our tailored business structure, we ensure that our portfolio managers are more focussed on performance rather than on gathering assets.
Yes. Quay Fund Services Ltd (AFSL No. 494 866) is the trustee and issuer of units in the Coaster Multi-Strategy Fund (Umbrella fund). Coaster Capital (CAR No. 001279156) and its subsidiaries are also corporate authorised representatives of Quay Fund Services Limited.
The minimum for an application amount with Coaster Capital is $50,000, or an amount otherwise approved by the Trustee.
Coaster Capital charge a management fee of between 1.5 – 2% per annum* (plus GST) of the Net Asset Value of the investment, calculated monthly and payable monthly in arrears. Coaster Capital also charge performance fees of between 15 – 20% on the increase in Net Asset Value (NAV) per Unit above the Benchmark Performance, subject to the High Water Mark.
*The exact fees will depend on the sub-fund you’re invested in. For specific information please refer to the latest copy of the Information Memorandum.
Of course. We will communicate with you each month your estimated performance, statistical summaries, and fund commentaries. You will also receive official confirmation of your investment, performance updates, distribution and tax information from the independent third-party fund administrator.
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