Maple-Brown Abbott has launched an Australian small companies fund following the appointment of Phillip Hudak and Matt Griffin to the boutique investment manager in April.
The Maple-Brown Abbott Australian Small Companies Fund is primarily invested in undervalued small companies where the investment team has conviction in medium-term earnings delivery and that are supported by sustainable business models. The fund typically holds 30–50 stocks which score well on combined earnings-based valuation and sustainability measures, with the focus on diversification and stock specific risk management. It aims to outperform the S&P/ASX Small Ordinaries (Total Return) Index, after fees, over a five-year period.
CEO and Managing Director Sophia Rahmani says the fund is based on the expertise, philosophy and investment approach of two experienced Australian small caps investors, who previously managed the AMP Capital Australian Emerging Companies strategy.
“Phillip and Matt have an impressive track record and a compelling earnings-based philosophy integrating a sustainability focus that we believe differentiates the strategy. They also have a proven and repeatable investment process, focused on in-depth fundamental research.
“Judging by the early market feedback, history of the team and capacity limits of small caps strategies, we expect this will be a popular offering for institutional and wholesale clients. The fund further diversifies Maple-Brown Abbott’s offering to investors, and we have seen early interest in a small caps strategy run as a boutique within Maple-Brown Abbott,” Ms Rahmani said.
Mr Hudak says he and Co-Portfolio Manager Matt Griffin have worked diligently with the support of the broader Maple-Brown Abbott team to launch the fund within a relatively short period.
“Matt and I are passionate about finding undervalued Australian small companies with idiosyncratic exposures, and we are excited to be able to do what we love in our new home at Maple-Brown Abbott.