The Acorn Capital Investment Fund plans to list late April, and the prospectus is now live - Three key points make this IPO stand out
The Acorn Capital Investment Fund plans to list late April, and the prospectus is now live - Three key points make this IPO stand out. Firstly, Acorn's pedigree: founded in 1998, currently manages over $1.1 billion, and this specific strategy has achieved 25% p.a. (Pre-fees) since inception in 2009. Secondly, the strategy invests in UNLISTED stocks, as well as listed, thus now giving retail investors access to companies typically off their radar and off-limits. Thirdly, the all-important timing is good: Small caps tend to oscillate between periods of over and under-performance relative to large caps. Acorn believes that as a result of the growth-focus of smaller companies, this sector has recently been overlooked by investors in favour of investment with high income or dividend characteristics. There are data suggesting that the near record period of underperformance in small caps has finished, and that they are now positioned for outperformance.