30 June 2011
Bennelong Funds Management (Bennelong) and Avoca Investment Management (Avoca) today released the Bennelong Avoca Emerging Leaders Fund.
Avoca, who joined forces with boutique multi-manager Bennelong last month, is headed up by John Campbell and Jeremy Bendeich. The team will manage the Bennelong Avoca Emerging Leaders Fund (the Fund), available to retail and institutional investors.
The Fund, which typically holds 30-50 stocks, is actively managed with investment decisions driven by the team's assessment of relative value. This in turn is driven by deep fundamental investment research, which ultimately seeks to arrive at an intrinsic value for each stock. Through the application of sound risk management principles including sector and stock concentration rules and tracking error limits, the team seeks to minimise volatility of returns whilst maintaining strong long-term investment performance.
"Particularly post-GFC, investment professionals can't afford to pursue performance to the exclusion of risk and volatility. Investors are, quite rightly, demanding a more balanced approach," said John Campbell, Avoca's Managing Director and Portfolio Manager.
"Small caps have been an outstanding source of alpha generation in the Australian market and we continue to believe this will be the case going forward."
"We are pleased to be able to broaden our offering to the market," said Jarrod Brown, Bennelong's Chief Executive Officer. The new Bennelong Avoca Emerging Leaders Fund complements Bennelong's established Australian equities funds - the three large cap funds managed by Bennelong Australian Equity Partners (BAEP), and the market neutral fund managed by Bennelong Long Short Equity Management (BLSEM).