Australian Small Cap Opportunities

The Paradice Australian Small Cap Opportunities strategy was launched in 2023. It looks to build on the successful small cap investment ethos at Paradice, but with a limited Funds Under Management (FUM) to help maximise investor returns through alpha generation.

This ethos relates to our view that equity markets are inefficient and therefore offer excellent investment opportunities over time. The inefficiencies arise due to excesses in investor emotion, a focus on short term investment horizons and, on occasion, a sole focus on one aspect of a company’s financial health – its profit and loss statement.

We believe a specific focus on cashflow and on the medium-term investment case for a company is critical – and that being able to look through short term earnings and market volatility is an important source of alpha.

We look for quality businesses that are not overly complex in nature, with strong balance sheets, great management teams and Boards. We diligently implement our investment process which has a strong focus on risk, and supplement this with an extensive company visitation program.

The strategy typically invests in 30-70 companies listed outside of the S&P/ASX 100, providing investors with an exposure to a diversified portfolio of emerging Australian businesses.

The strategy is implemented by two experienced portfolio manager/analysts in Sam Theodore and Michael Peet – both of whom have strong alignment to the investment performance of the strategy through the remuneration model and fund co-investment.