Spatium Small Companies Fund
The Fund takes a long-only investing approach to its portfolio with a view to invest in, on average, 25 to 40 positions across the ASX300. (For Wholesale Investors Only)
The Spatium Small Companies Fund is:
- an actively traded Fund, turning over the portfolio, on average, every 30-45 days; an Australian long-only product, investing in listed companies within the top 300 only;
- holding a majority of the portfolio’s positions within the 101-300 listed companies (the Small Ordinaries portion);
- invested in, on average, 25 to 40 positions on an equal weighted basis; and
- does not use gearing or leverage.
Objectives
Outperform
Outperform the benchmark over the long term by 5-6% p.a¹.
1Target returns of 5-6% p.a. above the ASX Small Ordinaries index benchmark is a target only and not a forecast. Target returns are not guaranteed to occur. Past performance is not necessarily indicative of future performance.
Majority Invested
Be majority invested at all times; on average holding <3% in cash.
Income Distribution
A focus on gains, with the intention of paying an annual distribution.
DAILY
Sector and industry agnostic, our investment strategy aims to identify undervalued equities through a methodical and agile approach, allowing Spatium Capital to focus on equities it believes will appreciate in the short term.
The Fund applies a systematic investment strategy, designed to identify undervalued equities listed on the ASX300 through processes that focus on robust filters.
The investment objective of the Fund is to generate capital gains by investing predominantly in listed Australian equity securities with an aim to exceed the return achieved by the S&P/ASX Small Ordinaries Index, over the long-term. At times the Fund may invest in international equities, and it may use futures and options, however the Investment Manager does not presently seek to engage in these investments.
Investment Approach
The Fund:
- invests in listed Australian equity securities (whilst the Trust Deed permits the purchase of international equities, the Investment Manager does not presently seek to engage in these investments);
- does not generally borrow and in the event of borrowing only intends to borrow for short term purposes such as funding redemptions; and
- intends not to, although may use futures and options.
As making informed investment decisions has become increasingly difficult and time consuming, Spatium Capital's investment philosophy asserts that listed companies are susceptible to being momentarily oversold or undervalued due to herd mentality and market psychology.
Put simply, we believe that with the influx of passive products (ETF's), major institutions occasionally requiring immediate access to capital and with the wider markets more frequently moving in herds, equities are prone to being sold-off hastily. This phenomenon has become particularly noticeable over the last 8 years of building and launching the investment strategy.
We consider this point to be a momentary mispricing which through our investment approach outlined below, we seek to identify these equities at their opportune moment to benefit from their appreciation.
Nicholas Quinn from Spatium Capital is back on Talk Ya Book to discuss the rapidly developing ESG investing landscape, the recent extreme commodity inflation, and three of his favourite stocks picks.
In this week’s episode of Talk Ya Book we’re joined by Nick Quinn from Spatium Capital. Spatium’s Small Companies Fund (SSCF) was founded in 2018 by long-term associates Nick and Jesse. The fund seeks to be actively moving between 25-40 positions across the ASX300, with their core focus surrounding companies that they believe have been oversold due to market inefficiencies. Tune in to hear Nick and I discuss global markets, the future of monetary policy and a few stocks currently on his radar.
The Spatium Small Companies Fund (Fund) is an unregistered managed investment scheme in the form of an Australian unit trust. The Fund is only available to investors that are wholesale clients as defined in s761G of the Corporations Act 2001 (Cth). M&Q Capital Pty Ltd is the investment manager of the Fund (Investment Manager). The Investment Manager is a corporate authorised representative (001279779) of True Oak Investments Ltd ACN 002 558 956 AFSL 238184. The Investment Manager's authority under its Corporate Authorised Representative Agreement with True Oak Investments Ltd is limited to general advice regarding the Fund only. True Oak Investments Ltd ACN 002 558 956 is the trustee of the Fund and the issuer of its Information Memorandum. Withdrawal rights are subject to available liquidity and may be delayed or suspended. The contents of this document are not intended as financial product advice and have been prepared without taking into account your personal circumstances, investment objectives or particular needs. You should read the Information Memorandum for the Fund in full to consider whether an investment is appropriate for you. Neither the Investment Manager nor True Oak Investments Ltd guarantee the repayment of capital, the performance of any investment or the rate of return for the Fund. Past performance is not necessarily indicative of future performance. An investment in the Fund is not a bank deposit. We strongly suggest that you seek your own professional financial or legal advice prior to any investment decisions.
Spatium Capital is an independently owned, boutique funds management firm.
Founded by Nick Quinn and Jesse Moors, Spatium specialises in identifying mispriced listed equities.
We believe that there is growth in an environment where equities are increasingly oversold or undervalued for short periods. By applying a clinical and disciplined investment process, we hope to capture these short-term mispricing’s for the benefit of the Fund.
As a Firm we have three key beliefs:
- Put your money where your mouth is: all liquid assets owned by the Founders are invested in the Firm & Fund;
- Do our own research: in an industry with numerous research offerings, Spatium is a DIY operator, relying on our robust filters and a clinical investment approach; and
- Preserve performance: funds managed by Spatium are limited in total FUM to ensure that investments can be entered and exited with agility.
In doing so, we believe this prioritises the performance returned to investors.
As making informed investment decisions has become increasingly difficult and time consuming, Spatium Capital's investment philosophy asserts that listed companies are susceptible to being momentarily oversold or undervalued due to herd mentality and market psychology.
Put simply, we believe that with the influx of passive products (i.e. ETF's), major institutions occasionally requiring immediate access to capital and with the wider markets more frequently moving in herds due to increased market participants, equities are prone to being sold-off hastily. This phenomenon has become particularly noticeable over the last 8 years of building and launching the investment strategy.
We consider this point to be a momentary mispricing which through our investment approach, we seek to identify these equities at their opportune moment to benefit from their appreciation.
Co-founder and Director of Spatium Capital, Nick has an affinity for physics and mathematics whose principles have influenced the creation of the Fund’s investment strategy.
In his capacity as Director, Nick’s responsibilities are predominantly focused on trading and portfolio construction, whilst supporting Jesse on numerous client engagement and firm-related tasks. He has shared responsibility for the investment management decision process with Jesse.
Prior to Spatium Capital, Nick led a team of software developers for a mining manufacturer, before moving to transfer pricing and international debt with one of the Big 4 consulting firms.
In his free time, Nicholas can be found riding his motorbike, reading all things finance, representing his local hockey club and walking his beloved labrador Bentley.
Qualifications: Bachelor of Commerce (Finance & Economics), University of Melbourne.
Co-founder and Director of Spatium Capital, Jesse is fascinated by the mental shortcuts that drive people to solve problems and make decisions, which supported the launch of the Firm.
In his capacity as Director, Jesse’s responsibilities are predominantly focused on distribution and market research, whilst supporting Nick on the portfolio construction and R&D-related duties. He has shared responsibility for the investment management decision process with Nick.
Prior to Spatium Capital, Jesse worked in restructuring and corporate finance with a US-listed consulting firm, before transitioning to business development and market penetration strategies with an international professional membership body.
When not cycling, Jesse enjoys travelling with his wife, reading various genres of non-fiction and playing with his dog Joli.
Qualifications: Bachelor of Arts, University of Melbourne and Master of International Business, Melbourne Business School.
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Published by True Oak Investments Limited (Issuer) & Spatium Capital (Investment Manager)
Published by True Oak Investments Limited (Issuer) & Spatium Capital (Investment Manager)
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