EXPERIENCE IS A SAFE GUIDE
Our experience as a Venture Capital investor has taught us that the only way to invest is by getting to know a company and its management team as intimately as possible. This is an approach that we have transferred into the listed environment.
Yes, this can take time and usually involves speaking with company insiders and industry experts, but we believe it is the best way to identify the companies we like on the ASX.
Our strategy in this space has now been proven over a seven year period of significant investment outperformance.
The Aura Australian Equities Fund’s primary focus is on the small and mid-cap stock universe. We get excited by the significant amount of overlooked value in the form of high quality but emerging Australian companies.
Our approach is a disciplined and patient one because we understand that great companies are made over time and are generally a function of their operating metrics and not their share price.
The Aura Australian Equities Fund is an exclusive product for wholesale & institutional investors seeking exposure to a high conviction, actively managed fund of ASX listed emerging companies that uses a bottom-up, deep value, fundamental research approach to stock selection. The Fund, both sector agnostic and free of leverage, uses a number of valuation methods to understand a company’s unique characteristics. A strong emphasis is placed on purchasing businesses rather than stocks. The aim of the Portfolio Manager is to deliver attractive long-term returns by investing in high quality but undervalued businesses, based on an assessment of the discrepancy between the current market price of a stock and its intrinsic value.
Our focus at Aura is buying businesses rather than stocks.
We like to get as close as possible to a company in order to fundamentally understand it. This includes gaining insight into corporate strategy, the management team and the wider operating environment.
The Fund is managed with a ‘growth at reasonable price’ bias employing a bottom-up approach with a strong focus on earnings direction and risk. The Fund actively looks for high quality companies that are trading at a discount to their intrinsic value and fulfill a number of other investment criteria.
Common themes we look for include investing in: growth potential, highly cash generative businesses, turnaround plays and Balance Sheet opportunities.
In addition to this, we look for a highly successful and motivated management team and a robust business model with positive tail winds.
Within the Fund, capital preservation is our number one priority and our risk management philosophy is managed across three pillars: the price we pay for investments, the business risks inherent to our individual holdings and the way we construct our portfolio.