Fund in Focus: The Level 18 Fund
Small companies can grow faster and deliver better returns than their bigger colleagues. It makes sense that a small company has the ability to disrupt an industry or find a niche that allows it to grow at a faster pace. The enticing nature of this growth though comes with heightened risk, as we experienced earlier this year with the Corona crash when the Australian Small Ordinaries Index fell 41 per cent in less than 5 weeks. We also saw it in the Great Financial Crisis (GFC) when the same index plummeted 63 per cent in 15 months. No small company is too big to fail!
The Level 18 Fund attempts to capture the great growth opportunities among the small companies listed on the Australian Securities Exchange while limiting the risk taken.
The managers of the fund, Centennial Asset Management, have a significant portion of their investable capital in the fund and look to avoid experiencing major losses in any given period.
While markets gravitate up over time, and being
exposed to the market is the norm, having the flexibility to be fully invested, hold unlimited levels of
cash or even short sell stocks, dials down the risk profile. This provides a distinct alternative for
- The number one goal is to preserve capital.
- Capacity is limited to $150 million with $110 million of funds currently under management.
- The Level 18 Fund typically invests in small cap companies that can generate sufficient free cashflow to finance their above average growth.
- Case Study: How City Chic Collective (ASX:CCX) fits the mould of companies that The Level 18 Fund likes to own.
- An overview of performance with FY20 gross performance of +6.7% vs –7.2% in the All Ordinaries Accumulation Index.
- Outlook: Why we remain bullish on the Australian equity market
For more information call 02 8071 9225, email email@example.com or visit our website.
**The Level 18 Fund is currently open to Wholesale Investors only.
Watch the full fund presentation by clicking on the player below.
Welcome to Livewire, Australia’s most trusted source of investment insights and analysis.
To continue reading this wire and get unlimited access to Livewire, join for free now and become a more informed and confident investor.
1 stock mentioned
Matthew is the Principal and Portfolio Manager at Centennial Asset Management. Prior to this, Matthew was the CIO at Wilson Asset Management between 1998 and 2011, achieving 18% p.a. over the period.
Please sign in to comment on this wire.