KSM - K2 Australian Small Cap Fund (Hedge Fund)

Introduction

The K2 Australian Small Cap Fund provides investors, including those with Self Managed Superannuation Funds (SMSF), the opportunity of diversification through Australian Small / Mid cap equity markets. The K2 Australian Small Cap Fund benefits from specialist and active fund managers who keep a watchful eye on the smaller end of the Australian market and are forever vigilant.

The fund has a mandate to invest both long and short in equity markets, with the added flexibility of investing in cash. The fund seeks to provide investors with absolute returns, through actively managing key calls – equity, cash exposure. Since inception in late 2013, this strategy has delivered clients with significant outperformance above its benchmark.

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K2 Australian Small Cap Fund Performance
at: 31 March 2017 Net of fees
1 month
%
6 months
%
1 year
%
2 year
%
3 year
%
Since
Inception
% p.a
K2 Australian Small Cap Fund 3.14% -2.59% 9.6% 7.3% 9.5% 12.9%

Find out about:

Fund Facts

ASX Ticker KSM
Intraday Indicative NAV (iNAV) A$2.57 as at 4:15PM 28th Apr 2017
Lead Portfolio Manager Campbell Neal
Structure Australian Small Cap Equities Fund
Inception 1 December 2013
Fund Size A$20.7M as at 31-Mar-2017
Management Fee 2.0% p.a
Performance Fee 20% performance fee is applied once the fund achieves its High Water Mark
ARSN Code 166 480 584

Investment Philosophy

The K2 Australian Small Cap Fund seeks to add value by investing in mis-priced stocks. Investing in companies whose fundamental value has not been recognised by the market.

K2's assessment of a company's management, industry structure and valuation leads to investments in well managed companies in industries with structural growth or barriers to entry that have been neglected by the markets and off attractive relative pricing.

Research Report

Click here to view the latest KSM report from Independent Investment Research.

Announcements

Please refer to the following link for all ASX announcements for the K2 Australian Small Cap Fund.

K2 Australian Small Cap Fund ASX Announcements

Investment process

The portfolio is constructed primarily via a bottom investment process which identifies K2's highest conviction ideas. If there are not enough strong ideas or opportunities the fund will hold cash.

Management and industry structure assessment are vital criterion in stock selection; K2 believes thats its the strength of management in strong industries that drives the success of businesses.

Management quality is assessed via:

  • Track record
  • Execution of business strategies
  • Capital Management
  • Alignment of interests with shareholders

 

Industry Structure is assessed via:

  • Growth outlook, supply and demand
  • Barriers to entry, potential competition
  • Regulatory environment
  • Substitutes
  • Pricing Power

 

Valuations are monitored on a reltive basis with EPS growth and PER, forming the criteria for determining current value and identifying when the intrinsic value assessment is reached.

In assessing instrinsic value, stock liquidity is a key consideration. As a high conviction portfolio with an ability to hold cash, monitoring valuations helps set realistic price targets.

Historical Performance

Small Date Current
NAV
1 month 3 months 6 months 1 year 2
years
(pa)
5
years
(pa)
Since Inception
(pa)
NAV 31/03/2017 2.63 3.14% 3.14% -2.59% 9.58% 7.3% 5.57% 12.9%

Hold the mouse over the graph line to confirm the month and exact value. (All prices in AUD).

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Fund Inception Date - 1 December 2013.

 

Returns are based on the NAV per unit plus distributions reinvested net of management fee and performance fee accruals, since inception. Returns represent the combined income and capital return for the period and are pre-tax. K2 does not invest by reference to the index and accordingly the equities held by the Fund can diverge significantly from underlying market indicies.
All performance returns are shown after all fees (including performance fees) and expenses have been deducted and assume reinvestment of income distributions. Past performance is not a reliable indicator of future performance.

Historical Exposure

Geographic Equity Exposure

Graph represents geographical exposure as at 31/03/2017

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AMIT Regime Notice - K2 Australian Small Cap Fund

How to Invest

1 – K2 Australian Small Cap Fund PDS

2 – Trade via your online broker account or contact your stockbroker or financial planner

Unit Prices

All Prices in AUD

DateNAV
27/04/172.57
26/04/172.57
24/04/172.57
21/04/172.57
20/04/172.58
19/04/172.58
18/04/172.59
13/04/172.61
12/04/172.61
11/04/172.62
10/04/172.62
07/04/172.61
06/04/172.61
05/04/172.61
05/04/172.61

Download Daily Pricing Performance CSV

K2 Australian Small Cap Fund Financial Statement

Please click here to view the 31 December 2016 K2 Australian Small Cap Fund Financial Statements.

Please click here to view the 30 June 2016 K2 Australian Small Cap Fund Financial Statements.

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