FYI taken from company website
SGH
INVESTMENT STRATEGY
This fund is designed to provide medium to long-term capital growth, by primarily investing in companies that have a market capitalisation of less than $500M at the time of purchase. This may include resource exploration companies, early stage bio-technology companies and technology start-ups.
SG Hiscock’s investment philosophy is based on the belief that the market incorrectly prices emerging companies due to agency factors and institutional liquidly constraints. Our investment approach is style neutral and is based on a three-stage value-active investment process which takes into account fundamental security analysis, qualitative assessment of company management and industry structure, and technical analysis.
It is our belief that there are more stock selection opportunities, less fund manager competition, and better prospects for growth in companies with market capitalisation of less than $500M. Further, we have found there is significantly greater deal flow in emerging companies in the form of initial public offerings (IPOs), institutional share placements and merger & acquisition activity, providing increased outperformance potential through active management.
