Small cap portfolio managers Chris Prunty and Tony Waters have launched their own fund after jumping ship from Ausbil Dexia in April 2017.
Mr Prunty and Mr Waters were the portfolio managers of Ausbil’s micro cap fund for seven years before their abrupt departure in April, prompting research houses to downgrade the fund to ‘redeem’.
The two men will be hoping to attract some of Ausbil’s clients to their new venture, the QVG Opportunities Fund.
The fund is the first investment vehicle created by QVG Capital, the boutique firm launched by the pair in June 2017.
The QVG Opporunties Fund will invest in smaller Australian companies on behalf of high-net-worth individuals and institutions, according to a statement.
Mr Prunty said he was confident in the investment strategy, which iss backed by the two fund managers’ experience in small caps investment.
“With the QVG Opportunities Fund we’ll continue our approach to small company investing with a fund structure that allows us to focus on sustained performance over the long-term,” Mr Prunty said.
According to the statement, Mr. Waters said there was a “sweet spot in the Australian market” and the full-year results would reveal companies that captured “quality, value and growth”.
“By identifying companies relatively early in their lifecycle we can enjoy the performance benefit of longer growth runways that small growing companies enjoy and avoid the performance headwinds experienced by larger companies as they experience their inevitable maturation,” Mr Waters said.
The investment time frame of the QVB Opportunities Fund is five to seven years. The fund’s mandate allows it to hold cash, and it does not use leverage or derivatives, the statement said.
