Sandon Capital Activist Fund
The Fund offers investors access to a dedicated ‘shareholder activism’ strategy that looks to generate attractive risk – adjusted capital growth with some income. (For Wholesale Investors Only)
Sandon Capital established the Sandon Capital Activist Fund in 2009 to apply its activist investment approach. The Fund invests in particular companies and trusts identified by Sandon Capital where it believes there is inherent value and that, by seeking change, Sandon Capital can create, enhance or extract that value. The fund aims to generate attractive risk-adjusted capital growth with some income.
Sandon Capital believes that being an active owner of the companies and trusts in which it invests can lead to superior investment returns.
Being an active owner means we seek to engage with the boards and management of the companies we invest in, as well as other stakeholders, including shareholders, to identify opportunities that may enhance and extract value in those companies for the benefit of all shareholders. This approach is commonly known as “activist investing”.
To hear or learn more about our activist approach visit our website www.sandoncapital.com.au
The Fund seeks to invest in opportunities that are considered by Sandon Capital to be trading below their intrinsic values and that offer the potential of being positively influenced by Sandon Capital taking an active role in proposing changes in key areas including:
- corporate governance;
- capital management;
- strategic and operational issues; and
- management arrangements, and other related activities.
Although activism is at the core of what the Investment Manager does for the Fund, other strategies may be deployed from time to time, including merger arbitrage and other market based opportunities, where the Investment Manager considers the potential risk adjusted returns are attractive.
The Fund’s focus is to invest in companies and trusts listed on the Australian Securities Exchange (the ASX) that Sandon Capital considers to be undervalued and which offers the opportunity for value uplift through an activist investment management strategy.
Positions may also be taken in companies where the activist potential is limited, where the Investment Manager considers that such a position takes the Fund forward to achieving its stated objectives.
Unlisted investment positions – activist and otherwise - are possible.
Some exposure to debt investments (such as debentures or corporate notes) is also possible. From time to time, cash holdings may be very significant.
Up to 15% of portfolio value may be represented by international (or offshore) exposure. The Fund may use derivatives to hedge risk and to obtain investment exposure. The Fund may short sell and can borrow.
An active engagement strategy is hands on and time-consuming, often with strategic positions being taken and grown. As a result, the Fund’s mature portfolio is relatively concentrated.
This Fund should be considered relatively concentrated. It does not offer the same levels of diversification as other more traditional equity funds.
The overall portfolio varies in terms of numbers of positions, and may comprise 15 to 20 investments, sometimes more.
The Fund typically is focussed in value terms on 5 or 6 key positions, which may comprise 50% or more of the portfolio. It is usually these handful of investments which are the focus of activist engagement at any one time.
A typical holding period might be between 1 and 3 years. Some investments may be held for far longer.
The Fund may also hold significant proportions of its assets in cash. This may be the result of Sandon Capital building a position in a target investment, having recently sold down an investment, or as a result of having the view that cash represents a better alternative to being invested at that point.
* This fee is inclusive of Trustee, Custody, Fund Administration and Registry Fees.
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This document has been prepared by Sandon Capital Pty Ltd (ACN 130 853 691) (AFS License 331663) (Sandon Capital). This document contains general information only. It is not intended to take the place of professional, legal, tax or financial advice. Sandon Capital has prepared this document in good faith in relation to the facts known to it at the time of preparation. In preparing this document, Sandon Capital did not consider the investment objectives, financial situation or particular needs of any recipient, and the recipient should not rely on the opinions, recommendations and other information contained in this document alone. Sandon Capital does not express any views about the accuracy or completeness of the information in this document and is not required to update the information in this document. Past performance is not a reliable indicator of future performance.
Established in 2008, Sandon Capital is an Australian-based value investor that applies activist techniques. It is currently the investment manager of two other investment funds.
Sandon Capital devises and implements activist engagement strategies that seek to unlock and enhance the value inherent in the investments it makes.
Since 2008, Sandon Capital has established a track record of performance and achievement in applying its investment approach.
Sandon Capital seeks out investment opportunities that it considers undervalued, and which it believes provide the opportunity to unlock and enhance value through active engagement with boards, management and other stakeholders.
It has the primary focus of generating attractive risk-adjusted returns for investors using the combination of its value investment philosophy combined with its activist engagement strategies.
Sandon Capital believes together these give tremendous potential for superior, risk-adjusted, investment outcomes.
As the founder of Sandon Capital in 2008, Gabriel has been involved in the financial services sector for more than 25 years.
Gabriel is the Chairman of Sandon Capital Investments Limited (ASX: SNC). He is a non-executive director of Future Generation Investment Company Limited (ASX: FGX).
From time to time he takes on Board positions as part of Sandon Capital’s engagements.
Gabriel has a BA(Hons) and MCom both from the University of New South Wales.
Campbell joined Sandon Capital in 2014 and has more than 20 years of experience in both Australian and international financial markets.
Prior to joining Sandon Capital, Campbell managed a Global Materials portfolio for Millennium, a New York-based hedge fund with US$25bn under management.
Preceding this, he was a Senior Analyst for a Global Industrials portfolio at Citadel Investment Group, a US$30b Chicago-based hedge fund.
Campbell started his career in Australia, working in the Investment Bank at ANZ and after that as an Equity Research Analyst for Merrill Lynch before moving overseas in 2007 to work in Alternative Funds Management.
Derek is the Chief Operating Officer of Sandon Capital and has over 25 years of experience in the asset management industry.
Derek commenced his career at Macquarie Bank in 1995 and over the proceeding 25 years held increasingly senior roles in the Macquarie Asset Management division as the business grew organically and through acquisition.
Derek has deep operational, risk management and product experience where he has led significant business strategy and transformation programs. Derek has worked in and across a variety of regions for Macquarie Asset Management including in his role as Chief Operating Officer – APAC and, most recently, as Global Head of Investment Operations.
Derek has a Master of Business Administration from the University of New South Wales, Australian Graduate School of Management business school.
Relevant Documents
You should read the PDS, TMD (if applicable) or any Investment Memorandum (or other offer documents) related to this product before making an investment decision. These documents (if available) can be found at https://sandoncapital.com.au/, or if this is a "wholesale investor only" investment, can be viewed by contacting the Product Issuer identified on the aforementioned website.
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