The nine commandments of small-cap success
The below Fund in Focus video was produced by Livewire Markets and published on 29 November 2021.
Like the Swiss mountain that is its namesake, the team at Eiger is always striving to achieve higher results for its investors. The three founders Stephen Wood, Victor Gomes and David Haddad all met at a Swiss asset manager, and they have applied this clockwork efficiency and process in their approach to cracking the small-cap code.
With over 70 years of collective experience, the team has developed a strategy that looks to uncover the next big idea through an extensive filter of qualitative and quantitative measures.
“We have been working together as an Australian small company specialist for more than a decade and in that time developed an effective investment thesis and system. Our approach’s track record has been proven through a range of economic cycles with both markets that are rising and markets that are falling.”
Their fascination with the smaller end of town stems from the potential to identify companies that are commencing growth trajectories, as well as those that are set to benefit from global structural trends. In this Fund in Focus, Stephen Wood explains the thinking behind the Eiger Australian Small Companies Fund, how they approach identifying the next big winners while managing downside risk, and provides two examples of companies that fit the process perfectly.
This material has been prepared by Eiger Capital Pty Ltd (ABN 72 631 838 607 AFSL 516 751) (Eiger), the investment manager of Eiger Australian Small Companies Fund (Fund). Fidante Partners Limited ABN 94 002 835 592 AFSL 234668 (Fidante) is a member of the Challenger Limited group of companies (Challenger Group) and is the responsible entity of the Fund. Other than information which is identified as sourced from Fidante in relation to the Fund, Fidante is not responsible for the information in this material, including any statements of opinion. It is general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider, with a financial adviser, whether the information is suitable to your circumstances. The Fund’s Target Market Determination and Product Disclosure Statement (PDS) available at www.fidante.com should be considered before making a decision about whether to buy or hold units in the Fund. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. Past performance is not a reliable indicator of future performance. Any projections are based on assumptions which we believe are reasonable but are subject to change and should not be relied upon. Eiger and Fidante have entered into arrangements in connection with the distribution and administration of financial products to which this material relates. In connection with those arrangements, Eiger and Fidante may receive remuneration or other benefits in respect of financial services provided by the parties. Fidante is not an authorised deposit-taking institution (ADI) for the purpose of the Banking Act 1959 (Cth), and its obligations do not represent deposits or liabilities of an ADI in the Challenger Group (Challenger ADI) and no Challenger ADI provides a guarantee or otherwise provides assurance in respect of the obligations of Fidante. Investments in the Fund(s) are subject to investment risk, including possible delays in repayment and loss of income or principal invested. Accordingly, the performance, the repayment of capital or any particular rate of return on your investments are not guaranteed by any member of the Challenger Group.