Tribeca Alpha Plus Fund

Tribeca Alpha Plus Fund, is one of Australia’s longest running equity long short funds and has been annualizing an excess return of 3.01% per annum over its benchmark, the S&P/ASX 200 Accumulation Index, since inception. Over the last 12 months it has outperformed its benchmark by 3.49% after fees.

The investment team has a significant edge in fundamental analysis of companies. In this respect Tribeca’s Australian equities team has been operating successfully in the Australian market for over 22 years and has deep and broad relationships with listed corporates as a starting point for their analysis.

Typically, the fund will holds 60-70 positions long and 30-40 positions short at any time. The fund has a flexible approach to sectors within the market, thereby optimizing sector allocation based in the best risk reward. Similarly, the portfolio management team are not restricted to only looking at ‘value’ or ‘growth’ rather they are able to look at individual companies in the context of their valuations versus the broader market, economic environment and industry dynamics Ranked # 1 performing Fund by Mercer for 2 years to 31 January 2021 and for 3 years to 30 September 2021 against all Australian Long Short Managers Ranked “Highly Commended” by Money Management (Fund Manager of the Year 2021 Award). Rated “Recommended” by both research houses Zenith and Lonsec.

The Fund aims to achieve positive returns in excess of the Fund Benchmark, before fees and expenses, over the long term by taking both Long Positions and Short Positions in selected Australian shares.

Long-term investors seeking an Australian equity Long/Short investment strategy with a high level of risk.

The goal of the Fund’s investment strategy is to generate investment returns in excess of the Fund Benchmark over the long term by taking both Long Positions and Short Positions in selected Australian shares that are listed, or expected to be listed within 90 days, on the Australian Securities Exchange (“ASX”). This is an Australian equity Long/Short strategy with the typical asset classes held by the Fund being cash and cash equivalent instruments, Australian listed shares and other equity like securities and exchange traded derivatives. The Fund may have between 90% and 150% of its NAV invested in Long Positions and 0% to 50% of its NAV invested in Short Positions.

This is an Australian equity Long/Short strategy with the typical asset classes held by the Fund being cash and cash equivalent instruments, Australian listed shares and other equity like securities and exchange traded derivatives. The Fund may have between 90% and 150% of its NAV invested in Long Positions and 0% to 50% of its NAV invested in Short Positions.

Tribeca employs a sophisticated set of financial tools to analyse the vast array of information available in investment markets. Investment decisions are then taken to the next level by employing a team of dedicated investment professionals to seek out information not reflected in market pricing and identify superior investment opportunities.

This investment process can be categorised into two broad styles of investing – quantitative and fundamental.

The quantitative process is designed to exploit particular behavioural biases that are exhibited by investors and can be explicitly measured through precisely defined factors. These factors generally fall into the categories of either value or momentum and can be implemented through Bottom-up.

Research or Top-down Research. The benefit of a quantitative process is that it enables a large number of stocks to be compared quickly and efficiently in an unbiased fashion. It provides an enormous amount of breadth to the investment process and enables a company’s likely outperformance to be assessed in an objective manner. Tribeca has developed both stock specific and macro-based quantitative models.

The fundamental process reflects the roots of Tribeca as an investment house focused on detailed company research. The advantage of this style is that a significant amount of detail on a company can be unearthed and used to generate insights into its future prospects and likely investment returns. Tribeca has a team of highly qualified and experienced investment analysts who conduct specialised research in various sectors of the equity market. They use their detailed knowledge of these sectors to construct detailed financial models that can be used to identify companies with superior investment prospects.

Tribeca has developed a unique process for the Fund that creates a fusion of quantitative and fundamental investment philosophies. This allows them to take advantage of a Long/Short investment style while harnessing the benefits of high conviction research.

The assets of the Fund will generally be invested in accordance with the following guidelines:

• The Fund aims to invest in a portfolio of securities that are listed, or expected to be listed within 90 days, on the Australian Securities Exchange (“ASX”)
• At least 90% of the net value of the shares and like securities held in the Portfolio must be represented by the value of shares and like securities which are constituents of the S&P/ASX 200 Accumulation Index or which are expected to be constituents of that Index within 90 days from purchase
• The Fund may have between 90% and 150% of its NAV invested in Long Positions
• The Fund may have between 0% and 50% of its NAV invested in Short Positions
• The Fund’s net exposure to securities will range between 90% and 100% of its NAV
• The Fund aims to hold no more than 10% of its NAV in cash
• At the time of entering a transaction, the exposure of the Fund to any security will not differ from the Fund Benchmark weight by more than 5%. The maximum allowable difference, including price changes, is 6%
• The Fund will not borrow, except by using overdraft facilities as and when required for the efficient settlement of transactions
• The Fund is permitted to use derivatives. Derivatives are used for hedging purposes only rather than to leverage the Fund. All derivatives used will be exchange traded and covered by cash, physical securities or a combination of both. Futures may be used to maintain market exposure when cash is held in the Fund. Due to movements in the market or similar events, the guidelines set out above may not be adhered to from time to time. In these circumstances, the Investment Manager will seek to bring the Fund’s investments back within the guidelines within a reasonable period of time.

* Management fees: 0.97% (net of GST/RICT) of fund NAV; plus performance fee (20.5% of benchmark outperformance, net of GST/RITC).