AOF is a concentrated, long/short equity fund investing in North American small cap opportunities. AOF applies a private equity approach to address the inefficiencies in the large pool of fundamentally sound, undervalued, small public, "buy-out" quality companies. The investment process combines a disciplined, deep value based investment philosophy which leverages secular themes and ground-level due diligence.
AOF selectively partners with management teams, operating executives, and primary capital providers to create value by creating institutional interest in the Firm's portfolio companies.
AOF mitigates market risk though consistent hedging and creates incremental alpha through tactical shorting
Active Owners Fund's investment style is as that of an active value investor. Value because the Fund will typically invest in companies that are considered to be trading for less than their intrinsic value and active because the Fund will seek to act as a friendly catalyst to drive value creation. The principals believe their shared perspective to be very similar to that of private equity investors. Like such investors, AOF takes an ownership mentality and will look to invest in those companies in which the principals believe their skill sets and relationships will help to create value. If a company does all the right things, but its intrinsic value continues to go unrecognized by the market, then AOF will generally seek to work with management and its shareholders to initiate some form of catalyst event.
The Fund's primary investment objective is to seek superior risk-adjusted returns through a combination of long positions and short positions primarily in equity securities issued by North American-domiciled companies that trade on North American exchanges. The Fund will generally be comprised of a concentrated portfolio of long positions and a less concentrated portfolio of short positions. The Fund will also short indices that will assist the Investment Manager in achieving its overall net exposure targets.
The Fund targets net exposure less than 50% and does not expect to be net short. The Fund will generally seek to limit its total long exposure to no more than 120% of committed capital.
The Fund typically holds approximately 10-25 long and 5-15 short positions. The Investment Manager will generally seek to limit each long position (at market) to 15% of its portfolio and each short position (at market) to 4% of its portfolio.
The Fund's portfolio is generally comprised of companies with market capitalizations between $100 million to $1 billion.