Greencape’s David Pace inducted to “Hall of Fame” as Australia’s top-stock pickers gather for a great cause

Thirty-year markets veteran and founding partner of Greencape Capital, David Pace, was inducted as the 24th member of the Funds Management Hall of Fame on Wednesday evening.

Pace joins a roll call of Australia’s most respected investors, accepting the honour in front of a packed room of the nation’s top stock pickers. 

The event not only celebrated investment excellence but also raised funds for the Australian Fund Manager Foundation and its charity partners, Odyssey House NSW, the Sydney Children’s Hospital Foundation and Childhood Dementia Initiative.

Founded in 2006 by Pace alongside Matthew Ryland and Marc Hester, Greencape Capital has grown into one of the country’s leading equity managers, overseeing around $15 billion across two Australian equity strategies.

Pace, who announced his retirement earlier this year, has typically shied away from the media spotlight. In recent months, he has been vocal on topics ranging from the importance of investor relations for ASX-listed companies to his disbelief at James Hardie’s acquisition of Azek.

He puts any of his and Greencapes’ success down to the egalitarian, family-first culture they deliberately cultivated from the beginning.

“From day dot we committed to a REM structure that we thought was clean, equitable and really powerful,” said Pace. “One in which, over time, everybody would have tangible equity in the business.”

“There are a few observers who consider Matt and I handing out our equity cheaply across the team to be a bad fiscal decision. I stand here today knowing it has been anything but.

"Complete alignment, no political positioning and driven by one solitary goal - consistent and convincing alpha.”

Pace told the room that this foundation underpins Greencape Capital’s future, giving him the freedom to shift his focus from his own career to supporting the ambitions of his three children, who were in attendance.

Hot competition against a bullish equity market backdrop

On the night, awards recognised exceptional performance across a range of equity strategies - from small and large caps to global equities and long/short funds.

The winners and finalists from the event are as follows.

Golden Calf Award - Mid Caps

Winner: Pendal Mid Cap Fund
(Award Sponsor: Macquarie)

Runners Up:

• Fidelity Future Leaders Fund
• Ausbil Emerging Leaders Fund
• Eley Griffiths Mid Cap Fund 

Best Australian Small Companies Fund

Winner: Ophir Opportunities Fund
(Award Sponsor: Moelis)

Runners Up:

• Bennelong Emerging Companies
• Spheria Emerging Companies
• WAM Capital

Best Australian based global manager

Winner: Hyperion Global Growth Companies
(Award Sponsor: Canaccord)

Runners Up:

• Munro Climate Change Leaders
• PM Capital Global Opportunities
• L1 Capital International

Golden Bull - for the best large cap manager

Winner: Alphinity Sustainable Share Fund
(Award Sponsor: Shaw and Partners)

Runners Up:

• First Sentier ex20
• Ausbil Sustainable Equity Fund
• Perpetual Industrial Australian Share Fund

Long/Short - for the best absolute long/short manager

Winner: Firetrail Absolute Return Fund
(Award Sponsor: Royal Bank of Canada)

Runners Up:

• Paradice Equity Alpha Plus
• QVG Long Short Fund
• Regal Australian Long Short Fund

Calcutta - top picks to support charity

Also on the night was the commencement of a new Calcutta Challenge and the announcement of last year’s winner.

The Calcutta Challenge is a stockpicking competition where those in the room pick the ASX stock with a >$1 billion market cap they think will have the best total return over the next 12 months, with the proceeds going to support charity partners Odyssey House NSW and the Sydney Children’s Hospitals Foundation.

Entries for the previous year’s Calcutta Challenge averaged an impressive return of 25% over 12 months (despite counting Opthea amongst their ranks). But the winner was Life360 (ASX: 360) backed by Evans and Partners, who have also backed it again in next year’s challenge.

The dozen or so entries put forward for the coming edition ran a gamut of themes from fast food Guzman Y Gomez (ASX: GYG ) to pharma with Telix (ASX: TLX), gold with Kingsgate Consolidated (ASX: KCN) to upcoming IPO hopeful of GemLife.

About the Australian Fund Manager Foundation

Established in 1999, the Australian Fund Managers Foundation is an independent not-for-profit organisation run by a volunteer committee of Australian investment professionals committed to supporting charitable causes and promoting excellence within funds management.

Each October, the Foundation hosts the Australian Fund Manager Awards — an annual event that recognises outstanding achievement, while raising funds for community-based charities.