The Ellerston Mid Cap Opportunities Fund is made up of a portfolio of between 25-40 medium capitalisation companies we’ve identified as being the leaders in their respective industries.

The Fund adopts a unique investment process that aims to produce consistent returns over time.

• Attractive risk/reward: an exposure to genuine mid cap market (note: portfolio has a typical average market cap of AUD$3.5bn) gives investors access to attractive growth opportunities which can provide a source of uncorrelated returns throughout different market environments.
• Under-researched: Mid cap securities tend to have lower levels of broker coverage compared with their large cap peers, which leads to an information asymmetry that can be leveraged by those willing to undertake fundamental research.
• Diversification: Mid cap securities help to diversify a portfolio. The larger end of the Australian stock market is highly concentrated and dominated by particular sectors (i.e. Financials and Materials); mid cap securities can provide diversification in a variety of other sectors.

The Fund employs an active, research-driven investment approach that seeks to identify a portfolio of Mid Cap companies with the aim of delivering superior returns to the Benchmark over time.

The Fund will invest in companies that are believed to have the potential to deliver significant upside over the medium term and where there is a reasonable margin of safety to mitigate the downside risk.  We will actively manage the positions of the Fund.

Investments will generally be made in companies that have a sound business franchise with an attractive earnings profile, that operate in growth industries and trade at a discount to valuation.