OC Micro-Cap Fund recommended on debut
OC Funds Management’s micro-cap fund has received a ‘Recommended’ rating from Lonsec on debut.
In awarding the Fund, Lonsec acknowledged the strength of OC’s investment process, available capacity and alignment of interest with investors.
According to the report, “the Fund is attractive from a capacity standpoint and can take advantage of low FUM to increase alpha potential versus some larger peers”.
It also stated, “Lonsec regards this Fund as a differentiated product in the micro-cap universe that allows investors some exposure to the higher risk/return segment of the micro-cap market in a risk-controlled manner”.
OC’s Head of Investments, Robert Frost, said the rating highlighted the team’s proven process and ingrained risk-management focus.
“We are pleased the Fund has received such strong endorsement on debut,” commented Frost. “Investors are seeking alpha which can be difficult to achieve among larger stocks, particularly in a low-growth environment. We believe micro-cap companies offer investors exposure to some compelling investment opportunities and real long-term capital growth potential.”
“This is obviously a pleasing result for OC and one that recognises the team’s efforts as dedicated smaller companies investors,” said Sam Baillieu, Chief Executive Officer of OC’s parent, Copia Investment Partners.
The Fund invests in up to 60 Australian and New Zealand stocks with a market cap of less than $350 million at the time of purchase. It is available on BT Wrap and Macquarie Wrap or via direct investment.
At the end of March, the Fund had returned 21.9%, 15.0% p.a. and 11.5% p.a. over one, three and five years, respectively.
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