Ophir Investment Philosophy

We are committed to offering our clients high performing investment strategies, underpinned by a value proposition common across all Ophir Funds.

Extensive, bottom-up research approach

We identify businesses with the ability to meaningfully grow and compound earnings over time. We believe the best value in share markets is found in smaller, less researched stocks, where the return for research effort can be significant.

We look for companies

  • In, or about to enter, a structural growth phase
  • Cash generative
  • Understood and can be easily valued by the team
  • Reasonably priced for assessed growth prospects
  • Operating with sound capital structures
  • Managed by high quality leadership teams
  • Under-researched, under-appreciated or misunderstood

Portfolio weightings reflect

  • The valuation gap between the current market price and our assessed value
  • Our level of conviction and views on appropriate investment timing
  • Liquidity and market capitalisation of the company

Our Fundamentals

Conviction over benchmarks

Our Funds are constructed in such a way that individual stock weights are chosen through a benchmark unaware approach and reflect investment team conviction in a company.

Limits on cash, sector and geography weights

Our Funds will generally not hold more than 25% of the fund in cash. We place risk constraints on how much we will hold in any one sector and manage the Fund’s exposure to market risks through the investment cycle. Where we are investing in overseas listed companies, we will seek to minimize geographic under or overweight exposure versus the benchmark.

Responsible investment

Delivering on our Funds’ long-term return objectives means taking into account environmental, social and governance (ESG) risks and opportunities in the investment decision making process and exercising positive influence through our Funds’ investments.

ESG factors are incorporated into our investment process including our engagement with companies on ESG issues and how we exercise our shareholder rights at company annual general meetings.

Download Ophir’s ESG PolicyDownload Ophir’s ESG Policy

Investment Process

The result of the Ophir investment process are Funds comprised of small and mid-cap companies that we believe can materially grow and compound earnings over time. We seek to do this in a risk-controlled manner through investing in a diverse range of reasonably priced, high quality businesses.

Idea generation Idea generation

Source stock ideas from diverse sources such as company visitation, brokers, business/industry reports, conferences, industry contacts.

Initial stock assessment Initial stock assessment

Understand the value drivers and perform quantitative and valuation screens.

Visitation program Visitation program

Implement a comprehensive in person company visitation program, including meeting with key value chain contacts (suppliers, competitors, customers) and independent industry experts.

Detailed bottom up analysis Detailed bottom up analysis

This includes detailed financial modelling and analysis of the company’s profit and loss, cash flow and balance sheet as well as valuation assessment versus price and peers. Further qualitative assessment is also undertaken.

Risk/return assessment Risk/return assessment

Analyse key risks to stock thesis including risks to earnings, valuation multiple, funding and liquidity risks. Determination of appropriate portfolio weight is considered.

Portfolio construction Portfolio construction

Stocks in portfolio represent the best risk adjusted return ideas of the team subject to appropriate risk overlay as a sector, factor, geographic and liquidity level.