The fund is being launched by Mr Pohl’s new venture, EC Pohl & Co, and will focus on stocks outside of the Australian Securities Exchange (ASX) top 50, Mr Pohl said.
The EC Pohl & Co Mid Market Opportunities Fund will allow for up to 40 per cent of its funds under management to be invested in unlisted private companies, which have the intention of listing on the ASX, he added.
The investment process will attempt to identify “capital light, quality companies and a focus on generating absolute returns for investors,” he said. The fund will be capped at $1.5 billion.
“What I have seen in the past is that the investment process can become too rigid as the manager strives to ensure the fund remains within certain parameters," he said. "Manager skill and the identification of exceptional investment opportunities therefore become secondary and may not be adequately reflected in the portfolio construction process.
“We aim to empower our investment team to use their skill in assessing investment opportunities and the relevant risks, rather than relying on indices and predefined structures to determine outcomes. Our incentive structures have been developed so that employees are remunerated as owners, and focused as investors.”
