Australian Equity Small Cap IMA

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​Investment Philosophy

T​he TAMIM Australian Equity Small Cap IMA can be summarised as a selection of Australian Securities Exchange (ASX) listed companies that have been identified by the 8IP as having under-recognised growth potential. These companies generally have one of the following characteristics: 

• A market-leading, multi-year competitive advantage; 
• A turnaround opportunity, either within the business as a whole or within a critical element of the business; or 
• A specific catalyst expected to generate short- medium term capital appreciation. 

It is anticipated that the performance of the portfolio will come from a combination of capital growth and dividends, with capital growth likely to provide the largest contribution

Investment Process

Stock Selection Process

1) Idea generation:

Ideas are generated primarily through the wide network of the portfolio managers, including at company meetings, with an additional contribution from quantitative screens.

The PMs actively seek to identify companies that fit the investment philosophy:

• “Star” companies with multi-­‐year competitive advantage
• Turnaround situations where specific change has occurred
• Under-­‐researched companies with attractive growth attributes

2) Develop conviction in investment thesis: 

When an opportunity has been identified, the portfolio managers seek to develop conviction in the investment thesis.

The steps may include:

• Meeting management on multiple occasions
• Cross-­‐checking management  statements  with  industry  experts  (typically  via  our  own networks or through a paid service such as the Coleman Group)
• Financial modelling to quantify the impact of the thesis on forecast earnings
• Sharing investment theses and financial models with other members of the investment team for review
• Allocating a conviction rating and target price