PM Capital strengthens investment team with the key appointment of Australian Shares Manager


Simon Rutherford

Sydney-based specialist equity fund manager, PM CAPITAL, has enhanced its senior investment advisory team with the appointment of a new long-only, Australian Shares Manager, Simon Rutherfurd.

With more than 22 years’ experience in funds management, Mr Rutherfurd’s career comprises senior roles at IAG Asset Management, Prudential Portfolio Managers Australia, ANZ Funds Management, BT Alex Brown and most recently at Northward Capital; covering stocks in the transport, healthcare, materials and media sectors.

Paul Moore, Chief Investment Officer of PM CAPITAL, said Mr Rutherfurd’s impressive track record and strong cultural alignment would assist the team in unlocking value in equities markets.

“For the 2012/13 financial year, the PM CAPITAL Australian Opportunities Fund delivered a 30.1% return, which marks the fifth year in a row that the Fund has met or beaten the index.

Our returns are a direct result of the dogmatic adherence to our long standing investment philosophy and process of buying a quality business at the time it is unloved by the market.” he said.

Mr Moore said taking this contrarian approach requires courage and conviction, particularly when the market is consumed with short term macro noise and the fear of being seen to be different from the rest of the crowd.

“The investment world can be a lonely place when your ideas are not consensus thinking. But the willingness to back our judgment and open ourselves up to the criticism of others, is what has allowed us to produce a return since inception of 290% versus a benchmark return of 171%.

“The reality of the investment world is that we do not know what lies ahead in terms of risk and opportunity. However, what I can tell you with certainty is the underlying philosophy that guides our investments will never change.”

In terms of current market opportunities, Mr Moore said he believes financial stocks have approached fair value and resources, although may rally in the short term, are not the place for long term capital appreciation.

“Our focus remains on the other 40 per cent of the market. It’s worth noting that while the ASX200 gained 23 per cent over the past year, the Small Ords actually lost five per cent, highlighting the divergent returns that can exist within the Australian market.

“The Australian Opportunities Fund has the flexibility to scour the entire market in the hunt for compelling investments, without being limited to a particular size, style, or sector bias, and with this flexibility we are continuing to find new stocks in which to invest. Simon’s experience and expertise is ideally suited to uncovering value in the Australian market and we welcome him to the team.”

The Australian Opportunities Fund’s objective it to provide long term capital growth via a concentrated portfolio of Australian securities. The Fund presents a true alternative to

Australian equities and achieves this through a contrarian, benchmark unaware approach to investing. The focused portfolio is comprised of approximately 15 to 25 stock specific ideas, which are subject to intensive research and peer group review. Stocks are selected on a risk reward basis where the objective is to maximize investors’ capital over the long term.

Mr Rutherfurd said; “For me, the key to long-term investing remains bottom-up stock picking, capital preservation and avoiding sectors that are experiencing long-term downtrends. Over many market cycles the focus always remains to own stocks with solid prospects, sound fundamentals and good management. Currently there a number of attractive local investment opportunities and I look forward to working with the team to introduce these to our investors.”

Simon Rutherfurd has an MA in English, MBA in Finance and is a qualified chartered accountant.

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