VSG's Global Multi-Strategy Fund: Building a multi-generational portfolio with an operator's mindset

This interview was filmed Wednesday, 13 August 2025

When it comes to building wealth across generations, few approaches are as rigorous, or as distinctive, as the Victor Smorgon Group’s Global Multi-Strategy Fund. 

This is not a conventional equities portfolio; it’s one that marries a deep operator’s mindset with a thematic, global approach to investing. 

The fund draws on lessons learned from owning and running businesses since the mid-1990s, combined with the backing of significant family capital, ensuring that every investment must clear a very high bar.

As Joseph Sitch, Co-CIO Equities, explains: 

“For the Victor Smorgon Group, the Global Multi-Strategy Fund is the group’s equities portfolio. So for us, the absolute return focus and capital preservation are really important to compound that capital for multiple generations. So that’s the target. 

In terms of how we go about it, we want to make sure that we’re in growing themes in companies that have free cash flow backing. 

We find that combination has worked for us over time because the theme provides the growth and the free cash flow backing provides the downside protection.”

That balance of growth and protection, alongside the ability to invest flexibly across jurisdictions and sectors, defines the fund’s DNA. 

From Japanese industrial automation through Hitachi, to Canadian miners such as Capstone, to high-quality Australian gold names, the strategy is broad but disciplined. Above all, the fund must compete not only against other listed equities, but also with the group’s private businesses and projects, ensuring that only the most compelling opportunities make the cut.

Watch the video above to find out more, or read a short summary below. 

INTERVIEW SUMMARY

A fund with deep roots and unique backing

The Global Multi-Strategy Fund represents the Victor Smorgon Group’s equities portfolio, with origins stretching back to 1995. Since 2019, co-CIOs Joseph Sitch and Peter Edwards have guided the strategy. 

What sets it apart is twofold: the significant investment from the Smorgon family itself, and the fact that the team approaches investing as operators who have owned and run businesses. As Sitch notes, this history allows for a long-term, thematic approach, supported by the group’s intergenerational outlook.

Thematic investing with global scope

The fund’s process starts with identifying powerful themes, then finding the companies best positioned along the supply chain. 

“Because we focus on the thematic first,” Sitch says, “that means that we can invest anywhere, we can invest in any jurisdiction, and it’s really dependent on who has the ultimate risk and reward in the supply chain of a growing theme.” 

Examples include Hitachi in industrial automation, Canadian miner Capstone, and Australian gold producers.

Absolute returns and capital preservation

The fund’s role is clear: to deliver absolute returns while preserving capital across generations. Sitch explains: 

“Victor had the view that we needed to compound at a significant percentage, over 10%, to make sure that the family’s wealth was maintained through generations. And he also had zero tolerance for loss of capital.” 

This dual focus drives the strategy toward high-quality companies with free cash flow that can support growth while protecting the downside.

A high bar for inclusion

The operator’s mindset shapes not just listed equity decisions, but also how opportunities are weighed against the group’s private investments. “We have that battle for capital,” says Sitch. 

“So for an investment to make it into our portfolio, it has to be a compelling risk reward, not just within equities, but it has to compete against investing in some existing private businesses.” 

That discipline, Sitch argues, keeps standards exceptionally high and ensures only the best opportunities enter the fund.