Australian Equities Value Fund

8/10/2019 Australian Equities Value Fund

1/17

Optimum Australian Equities Value Fund

Introduction and Launch

5th January

Prepared by Heinrich Jacobs

Managing Director & Chief Investment Officer


2/17


3/17

Contents

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4/17

Who we are

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Heinrich Jacobs

Managing Director &

Chief Investment Officer

Peter Cozens

Non-Executive Director


6/17

The Team

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Sophie Valkan

Non-Executive Director


7/17

What We Do

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8/17

How Are We Different?

Large Institutional FundsOptimum Capital

Management

CONS

The size of asset base can limit the ability to move in

and out of the best investments

Market Capitalisation-weighted strategies suffer froman inherent bias towards hot segments of the market,and often feature concentrated economic bets

Market Cap weighted and tend to focus only on largecap companies, missing valuable opportunities in themid-small cap space

Can be expensive relative to size and management

have no skin in the game. Poor alignment of interests

No skin in the game. Very poor alignment of interestsbetween management and investors

Limited flexibility, bureaucracy, slow decision making

PROS

We will have a smaller asset base giving us the ability tomove in and out of the best investment opportunities

Our only bias is to invest in the very best companies thatwe can buy at a discount to valuation, regardless ofeconomic trends, fads etc

We have a Market Cap agnostic strategy. We will investacross the spectrum; large, medium, small, and microcap

Good value relative to size. Tight cost controls

Excellent alignment of interests between managementand investors

Very flexible, nibble, and flat structure


9/17

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10/17

Our Investment Philosophy

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11/17

Our Investment Strategy

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12/17

Our Investment Process

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13/17

Why ROE & Good Capital Management Are Critical (example)

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14/17

Example of a Model Portfolio (Compounders)

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15/17

A Business With Poor Economics (example)

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http://www.optimum-capital.com.au/

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Australian Equities Value Fund