Naos Long Short Equity Fund
Fund attributes o Long/short fund, with a long bias. Investment universe 85% ASX 300 & 15% EX300 (market Cap > $100m)
o High concentration conviction portfolio typically holding 20+ securities. Exchange traded derivatives mainly used for hedging the long portfolio. AUD denominated Fund
Investment Strategy The Fund obtains exposure to Australian listed Companies and has been developed to provide investors with a long/short exposure to large cap investments.
The Fund only invests in listed securities or securities that are new issues due for listing. The Fund is designed to generate investment returns (capital growth and dividend income) by event driven activity. The investment strategy relies primarily on fundamental company research, quantitative analysis using a proprietary Price Verification Model and an understanding of the equity markets in which the companies operate.
The investment Manager considers that investment themes and momentum are essential in determining equity market returns in well-researched and efficient security markets (S&P/ASX 300 index).
Fundamental company research is also carried out to determine the value drivers of a business and the investment catalysts that drive a stock price towards its intrinsic valuation, or, target valuation.
The Investment Manager uses external and internal research sources to identify stocks to include in the long, and a proprietary quantitative software system which identifies stocks that persistently either outperform or under-perform the Australian equity market on a medium term basis.
Combining the above filters, the Investment Manager is able to identify investments for inclusion in the portfolio.
The portfolio will always have a long bias so shorting activities are used as an arbitrage tool. Short positions are implemented via an Index approach and the portfolio is subject to strict shorting guidelines and limits.
The Fund aims to achieve its investment objective by investing in a Diversified Portfolio of Long and Short equity Positions. Generally, the Fund will buy Long Positions up to approximately 130% of the Fund's Net
Asset Value, primarily in securities that the Investment Manager has identified as undervalued, and sell Short Positions up to approximately 30% of the Fund's Net Asset Value, primarily in securities that the Investment Manager has identified as overvalued. The gross market exposure limits generally target 160% of the net asset value of the Fund, with a maximum cash weighting of 30%.
The exposure limits to individual securities is +/- 17% of the Fund's net asset value. Investment Horizon the Fund is managed with the intention of generating returns over the medium to long term (five years plus).
The Fund is suitable for investors who:
o are primarily seeking capital growth from a portfolio of Australian stocks;
o are seeking some income via dividends and franking credits; and
o have a high tolerance to investment risk.
Regular performance updates and ongoing performance can be monitored via our website at www.naos.com.au
Minimum investment size and redemption amounts
The minimum initial investment in the Fund is $25,000.
The minimum additional investment in the Fund is $10,000. The minimum redemption from the Fund is $10,0001 .The minimum investment balance in the Fund is $25,000.
Any income received by the Fund will be distributed as at 30 June each year. The income will typically include dividend income, franking credits, interest income and realised capital gains. Naos reserves the right to change the timing and distribution frequency and will provide Unit holders with notice of such change.