About the Fund
The Paradice Australian Small Cap Strategy does not have a specific style bias.
We adopt a long term “bottom–up” approach to investment. Bottom–up stock picking involves assessing how a particular company will perform over a given period. If its potential performance appears strong, we then assess the outlook for its industry and finally the overall economy.
We believe that equity markets are inefficient and, therefore, offer excellent investment opportunities over time. The inefficiencies arise due to excesses in investor emotion, a focus on short term investment horizons and consistent focus on one of the least important aspects of a company’s financial health – its profit and loss statement.
We aim to buy shares which we believe are under-priced and expect to grow at rates greater than the market. Our strategy is to favour well-managed, good value companies that have significant growth opportunities through their comparative advantage. This comparative advantage can be via a combination of a better product or service, a more efficient organisational model, a favourable niche or a commanding leadership position within their industry. In our view, a good business requires good products and services and good execution.
The key to identifying these investment opportunities lies in our extensive insight and analysis of Companies and the industries to which they belong. We achieve this through an intense company Visitation program and our experienced investment professionals using proven valuation Techniques and models.
The Paradice Australian Small Cap fund aims to outperform the S&P/ASX Small Ordinaries Index over the longer term, focusing on short and long term money making opportunities. The benchmark of the Fund is the S&P/ASX Small Ordinaries Accumulation Index.