Core Fund Managers
Our core fund managers represent 65% of the portfolio with 18 securities in total. Hearts and Minds have selected six leading fund managers; Caledonia Investments, Cooper Investors, Magellan Financial Group, Paradice Investment Management, Regal Funds Management and TDM Growth Partners.
Each core fund manager has agreed to provide HM1 their best three highest conviction ideas, which will be reviewed each quarter.
Many of these core fund managers are not easily accessible to retail investors, providing HM1 shareholders with an opportunity to benefit from these managers’ best investment ideas.
To learn more about each of our core fund managers click their logos.
Caledonia is a global investment management firm with offices in Sydney and New York. With over 25 years’ investment experience, Caledonia’s goal is to achieve high absolute returns for their clients over a long-term time horizon. The firm manages a long short equity strategy with a focus on deep fundamental research and high conviction long-term investing.
Cooper Investors Pty Limited (Cooper Investors) is a specialist equities fund manager with funds under management of approximately $14 billion. Cooper Investors commenced operations in 2001 and manages money for a range of clients, including large pension and superannuation funds, religious institutions, Australian State Government agencies, school endowments, charities, high net worth families and retail clients. Cooper Investors is 100% owned by its employees.
Cooper Investors seeks to invest in quality companies with a strong value proposition.
Magellan Asset Management
Magellan Asset Management Limited (Magellan) is an Australian-based asset manager that is a wholly-owned subsidiary of Magellan Financial Group Limited, an ASX top-100 company that was formed by Hamish Douglass and Chris Mackay in Sydney in 2006. Magellan manages approximately $75 billion of funds under management as at 31 August 2018 across its global equities, global listed infrastructure and Australian equities strategies for retail, high net worth and institutional investors and employs over 120 staff globally.
Paradice Investment Management
Paradice Investment Management Pty Ltd (PIM) is a privately owned Australian boutique funds management business established in 1999. The business is solely focused on providing asset management for institutional and wholesale clients. PIM has approximately AUD 17 billion in assets under management with offices in Sydney, Denver and San Francisco. The Paradice Australian Small Cap fund was PIM’s initial product offering in 2000 and the business has subsequently expanded its investment range with four additional strategies, the Australian Mid Cap Fund launched in 2006, the Australian Large Cap Fund launched in 2007, the Global Small Mid Cap Fund launched in 2010 and most recently the Emerging Market Equities strategy, launched in 2018.
PIM are long-term, bottom-up investors with the belief that the equity markets are inefficient enough to provide excellent investment opportunities. PIM favour well-managed good value companies that have significant opportunities for growth. The investment process is focused on identifying securities that exhibit four key characteristics – undervaluation, business quality, strong financial metrics and shareholder friendly management teams. While undervaluation is the lynchpin of PIM’s process, investment candidates must also exhibit unique business quality with solid financial strength and management teams that know how to grow business value and search out companies that exhibit limited amounts of financial and operating leverage.
PIM has an uncompromising objective of delivering solid investment performance over the medium to long term. The business has built a reputation of carefully managing assets under management to ensure that its ability to generate superior results for clients is not jeopardised. PIM has a culture of employing exceptional investment professionals with proven track records of producing strong returns over time. With extensive in-house research and a disciplined approach to portfolio construction PIM has been able to deliver strong investment outcomes for clients over a long period of time.
Regal Funds Management
Regal Funds Management Pty Limited (Regal) is an alternatives specialist investment manager based in Sydney and Singapore. Regal was founded in early 2004 and is one of Australia’s leading investment managers servicing a wide range of institutional investors and high net worth individuals.
Regal’s fundamental long/short strategies utilise research driven, bottom-up stock selection focused on Australia and the broader Asian region. Regal’s investment process begins with an investment universe of over 500 companies in Australia and over 5,000 companies in Asia.
Detailed research is conducted drawing upon many sources including company visits, broker contact, industry research and financial models. Investment ideas are a product of forward-looking thorough research utilising previous experience combined with a bias towards opportunities where change is occurring.
Regal chooses individual stocks via a 4-step process that addresses valuation, macro factors, catalysts and seeks to identify where the market is making a mistake.
By following this process, Regal has a track record of delivering strong returns across its key strategies over a long time period.
TDM Growth Partners
TDM Growth Partners is a global investment firm with offices currently in Sydney and New York. TDM invests in fast growing companies run by passionate management teams. TDM’s unique and flexible mandate allows it to invest in public and private companies globally. TDM operates on long-term time horizons, fully aligned incentives, and a commitment to help scale businesses they are proud of. TDM has a highly focused approach to investing, with a portfolio of no more than 15 investments globally.