OC launches Zenith 'Recommended' micro-cap fund
OC Funds Management has launched a micro-cap fund as part of an expansion of its product offering in response to strong client demand.
Launched with Copia Investment Partners, the OC Micro-Cap Fund will invest in Australian and NZ companies with a market cap of less than $350 million.
Zenith has awarded the Fund a ‘Recommended’ rating in its first review.
“The Fund gives investors exposure to a diverse range of compelling and often under-researched companies at the smaller end of the market,” said Robert Frost, Head of Investments at OC.
“It can be challenging to generate alpha among larger, more mature companies which are heavily researched and many of our clients had been asking for a dedicated micro-cap product.”
“With around 1,800 businesses on the ASX with a market cap of less than $350 million, there is ample opportunity to find stocks that have the potential to deliver investors meaningful long-term capital growth,” Frost said.
“The Fund is the natural next step in OC’s evolution. With a long and successful track record as a small-caps specialist and a strong rating from Zenith, OC is well placed to manage a micro-cap strategy,” said Sam Baillieu, Copia’s Chief Executive Officer.
Expanding its offering has also created an opening for a new analyst in OC’s investment team. “It’s certainly an exciting time of growth for OC,” commented Baillieu.
The OC Micro-Cap Fund was previously known as the OC Concentrated Equity Fund, which although invested heavily at the micro-cap end of the market, was not a dedicated micro-cap strategy. The Fund was restructured and renamed in October 2016.
At 28 February 2017, it had returned 24.8%, 16.1% p.a. and 12.1% p.a. over one, three and five years, respectively.
The Fund is available for direct investment or via BT and Macquarie Wraps.
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