Profeta Global Investments Fund
The Fund aims to grow wealth for its investors over the long term by investing in well-managed, growing businesses. (For Wholesale Investors Only)
The Fund aims to grow wealth for its investors over the long term by investing in well-managed, growing businesses. The structure and culture of a business is very important to us and just as Profeta is a founder-run business, we focus on businesses where there is direct alignment with management and shareholders and clients. I have most of my family’s net worth in the Fund. I manage the Fund with the same prudence I exercise in managing my personal portfolio.
We aim to make investments at a price which provides a margin of safety against loss. We use fundamental analysis to buy assets where we view the downside to be limited and the upside driven by earnings growth and the market eventually valuing the asset in a rational manner. Using this process, we aim to generate superior risk-adjusted returns for our investors.
Culture is very important to us when investing in a business. Having grown up in owner managed-businesses and then working in more bureaucratic businesses, with disjointed decision-making, it is clear to us that owner-managed businesses tend to innovate quicker, allocate capital more effectively and outperform over the long run. We seek to invest in businesses with consistent and proven management teams that own large amounts of equity in the business. We also look for companies with strong balance sheets as this reduces the risk profile of the business and reflects prudence in the management team.
Given the absolute return nature of the Fund, up to 50% of the Fund’s assets may be held in cash. However, cash levels will typically be below 30%. The Fund may also use derivatives for securities or currencies to reduce the downside in the portfolio. Selective short-selling of structurally weak businesses may also be used to hedge out some of the equity volatility in the portfolio.
The Fund aims to have 20-30 investments in its portfolio, which are likely to include Australian and international shares, debt securities and derivatives, depending on where Profeta perceives opportunities to be most attractive. The number of long positions is expected to range between 5-50 positions.
Most of the Fund’s securities will be either listed on a stock exchange or can be actively traded in a market that permits independent third-party confirmation of pricing.
The Fund can invest up to 10% of the Net Asset Value of the Fund in unlisted securities. The fund offers daily liquidity to investors
The Fund is usually a “buy and hold” investor in most of its holdings. Finding, researching and getting to know companies is a slow and time-consuming process.
Options and short positions are used to hedge against equity and currency volatility to protect against drops in asset values or currencies. Individual direct short positions (excluding index shorts) may be initially sold up to a limit of 2% of the Net Asset Value of the Fund and will be reduced if the position exceeds 3%. The Fund may have a maximum total of 30% of the Net Asset Value of the Fund in direct shorts (being shorts that are not paired against a long position).
The maximum net equity exposure (including to equity indices) is 100% of the Net Asset Value of the Fund.
Maximum net equity exposure is defined as long equity minus short equity.
The Fund intends to borrow for short-term purposes only, such as funding redemptions. This will be limited to 30% of the Net Asset Value of the Fund.
There are no restrictions regarding geographical or currency exposure.
Profeta Investments is a global asset manager focused on delivering high absolute returns. Our portfolios are high conviction and we take a long-term view. We invest in quality businesses when their valuations are attractive. We seek out growing companies with strong balance sheets where management teams are strongly aligned with shareholders.
The management team of Profeta Investments have a large amount of our wealth invested in the Profeta Global Investments Fund. We are dedicated to delivering strong returns for clients and ourselves over the long-term, ensuring our interests are firmly aligned.
Our portfolios are high conviction and we take a long-term view. Our strategy is investing in quality businesses when their valuations are attractive. We seek out growing companies with strong balance sheets, where management teams are strongly aligned with shareholders. The management team of Profeta Investments has a large amount of their wealth invested in the Profeta Global Investments Fund.
We are dedicated to delivering strong returns for clients and ourselves over the long-term, ensuring our interests are firmly aligned.
Garry Laurence is the founder and portfolio manager at Profeta Investments.
As an experienced portfolio manager, he has been investing in global equities and other asset classes, both listed and unlisted, for a number of decades.
Garry established the Perpetual Global Share Fund in 2011 and grew it to circa $1 billion under management. He has a track record of generating double-digit returns in global equities at Perpetual Investments for over a decade.
Garry has also held senior investment positions at PM Capital and Morgan Stanley.
Garry launched Profeta Investments to focus on generating absolute returns for clients with a long-term focus on compounding capital.
Uri has over fifty years worth of experience in managing and investing in global companies, mainly in Australia and Europe.
He was the founder and managing director of U.R.I Printing Industries as well as the founder and managing director of Image Depot, a software company.
Uri is currently the chairman of BUGE Pty Ltd, an investment holding company as well as the Chief Financial Officer of Profeta Pty Ltd.
Timothy has over twenty years worth of experience in global markets.
Timothy has held senior investment roles at CFSGAM, Perpetual Investments and Morphic Asset Management. He is also the Co-founder of Mantis Funds.
Timothy has extensive experience investing in companies across Asia and Australia as well as the financials and industrials sectors globally.
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