Ellerston Australian Share Fund is a high conviction fund that looks beyond just investing in the Top 20 stocks in order to capture the neglected opportunities created by under-researched stocks in the broader Australian market.

While we aim to outperform the S&P/ASX Accumulation 200 Index, our investment process is totally benchmark independent, avoiding over-exposure to the large companies and sectors that dominate Australian equity benchmark performance. Instead, we invest in a concentrated portfolio made up of no more than 25 ASX listed securities, with a historical bias to midcap stocks outside the Top 20.

Key benefits

  • A high conviction fund: a bottom-up approach that focuses on high quality stocks or stocks that are out of favor and are mispriced.
  • Specialised investment expertise: access strategies and expertise previously available only to wholesale and sophisticated investors.
  • A robust, scalable and repeatable investment process: our dedicated team uses a process of disciplined analysis to consistently identify what we believe to be the most undervalued stocks that should be re-rated by the market over time.
  • Greater opportunities for alpha creation: a concentrated portfolio with a bias towards companies outside the Top 20, with potential for long term capital growth and income distributions.
  • A team you can trust: access to Ellerston Capital’s experienced investment specialists and benchmark “unaware” investment approach.

Invest with Ellerston Capital

Retail Investors

Contact ECS Investment Partners

Adam Coughlan: 0418 653 560

acoughlan@ecsip.com.au

Andrew Seddon 0417 249 577

aseddon@ecsip.com.au

Institutional Investors

Contact Ellerston Capital

Phone: (02) 9021 7797

info@ellerstoncapital.com

Disclaimer

Ellerston Capital Limited ABN 34 110 397 674 AFSL 283000 is the responsible entity and issuer of units in Ellerston Australian Share Fund ARSN 135 591 534. Any information is general and does not take into account your personal objectives, financial situation or needs. Accordingly you should consider the Product Disclosure Statement before deciding whether to acquire or continue to hold units in the Fund available from this website or by contacting us on 02 9021 7797.

Our bottom-up stock selection process is designed to identify undervalued stocks with the highest potential to generate alpha.

australiansharefundfeaturedprocess

What is benchmark independent investing?

Imagine you are building a portfolio of Australian shares. How do you decide which shares to include, and in what quantities?

What others do: the core and satellite approach

One traditional approach is to begin with a market benchmark, such as the S&P/ASX 200 Index. By investing in a core portfolio that broadly matches the index, you can help ensure that your portfolio’s performance is close to your benchmark. Then you can add extra holdings in sectors and companies you favour and think will outperform.

Unfortunately, this approach tends to deliver returns broadly in line with the market – even if the market is falling. It can also mean buying companies that are fully priced or even overvalued, simply because they make up a large part of the index. In a market like Australia, dominated by circa 10 leading companies and skewed to certain sectors (namely financials), that can significantly drive/limit performance.

What we do: benchmark independent investing

Benchmark independent investing takes the exact opposite approach. We start with the fundamental bottom-up analysis of individual stocks, looking for companies that we believe offer the greatest return potential for the lowest or most attractive price ( adjusted for risk). Then we back our convictions by constructing a portfolio of our very best ideas and selections.

At Ellerston, we pride ourselves on our ability to uncover mispriced opportunities and identify stocks that the market has misunderstood. As a result, our performance is more likely to be generated by alpha — individual stock performance — and less by beta — overall market movements. Because we drive our investment decisions, not the index, our strategy has the potential to deliver genuine outperformance, rather than simply waiting for the market to rise or fall.

Invest with Ellerston Capital

To find out more, contact Ellerston today.

Phone: (02) 9021 7797
Email: info@ellerstoncapital.com

Disclaimer

Ellerston Capital Limited ABN 34 110 397 674 AFSL 283000 is the responsible entity and issuer of units in Ellerston Australian Share Fund ARSN 135 591 534. Any information is general and does not take into account your personal objectives, financial situation or needs. Accordingly you should consider the Product Disclosure Statement before deciding whether to acquire or continue to hold units in the Fund available from this website or by contacting us on 02 9021 7797.