Overview

Our team of investment professionals operate three investment strategies.

1.

Ophir Opportunities Fund
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2.

Ophir High Conviction Fund (ASX:HCF)
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3.

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

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Strong Alignment with investorsOphir’s investment team are significant investors in the Funds

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Capacity ConstrainedTo ensure that the Fund’s size does not impact on fund performance we cap the size of the Funds

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Rigorous and repeatable investment process time-tested through market cyclesIdentifying businesses with the ability to meaningfully grow and compound earnings over time

Investment Philosophy

All Ophir Funds employ the same fundamental, bottom-up research approach aimed at identifying 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 that are:

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

Portfolio weightings of individual stocks 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 capitalization of the company

Importantly, 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.

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.

Investment Process

 

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Idea generation
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Idea generation
  • Source stock ideas
    • Company visitation
    • Brokers
    • Reports
    • Business / industry trends etc
  • Industry contacts/exports
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Initial stock assessment
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Initial stock assessment
  • Can we understand and value the business
  • Qualitative screen
  • Valuation screen
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Visitation program
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Visitation program
  • Comprehensive company visitation program
  • Industry value chain (suppliers, competitors, customers)
  • Expert consultant contact and visitation
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Detailed bottom up analysis
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Detailed bottom up analysis
  • Financial modelling
  • Further qualitative assessment
  • Valuation – instrinsic value and relative to peers
  • Detailed analysis of balance sheet
  • Data loaded in proprietary database
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Risk / return parameters
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Risk / return parameters
  • Assess company risks to achieve earnings estimates
  • Assess risks to achieve stock price target
  • Analyse liquidity of stock
  • Stock Thesis Screen
  • Determine appropriate weight of stock
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Portfolio construction
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Portfolio construction
  • Stocks in portfolio represent best risk adjusted return ideas
  • Risk Analysis
    • Sector allocation
    • Geographic allocation (eg resource vs industrial)
    • Portfolio liquidity
    • Market conditions
  • Continual refinement based on share price movements

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 business.

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