Greencape Portfolio Manager David Pace said the three largest ETF and passive fund providers now made up in excess of 9% of the share registry of stocks included in the ASX Top 20.

“With the index already highly concentrated, passive funds continue to pour in, directing more capital into companies based on their position within the index, regardless of their underlying fundamentals.

“We see this as an inefficient allocation of capital that creates pricing abnormalities and provides significant investment opportunities for active managers. The opportunities for active stock pickers to capitalise on mispriced companies are greater than ever,” Mr Pace said.

“A willingness to deviate from the index does not alone result in success. Rather, as is the case at Greencape, it is that willingness combined with very extensive company visitation that results in an optimal portfolio of risk-adjusted ideas. Without the requisite proprietary analysis, it’s risk taking for risk taking sake”.

Greencape Capital has more than $7 billion funds under management and has two key strategies, the Greencape Broadcap strategy and the Greencape High Conviction strategy. Both Australian equity strategies have over 10 years of track record and have consistently beaten their respective benchmarks by 5.06% p.a.1 and 4.69% p.a.2 gross since inception. Greencape’s research involves over 1000 company contacts per year.

This decade of consistent outperformance occurred against a backdrop of bull and bear markets that included the impact of the global financial crisis, the response by central banks in order to stabilise the global economy and more recently, political uncertainty.

Greencape Portfolio Manager Matthew Ryland said a secret to this success had been maintaining an unrelenting focus on analysing what is really going on in companies and verifying observable facts, enabling high conviction investment decisions to be made with a high degree of confidence.

“We take a long term view of stocks where we believe the market is not pricing correctly. In some cases the market avoids risk rather than price it. In other cases the market undervalues the ability of an effective management team to create value through efficient capital allocation.”

Greencape is the recipient of multiple industry awards and has achieved top research ratings from all three research houses for both the Wholesale Broadcap Fund and Wholesale High Conviction Fund: Lonsec – “Highly Recommended” rating (Oct-16), Morningstar Analyst Rating of Gold (Oct-2016) and Zenith “Highly Recommended” rating (Jun-17).

The post Flight to ‘passive’ means more opportunities for ‘active’ Australian fund managers appeared first on AdviserVoice.

Mr Green’s appointment deepens Greencape’s expertise and grows its investment team to six, while maintaining its close knit investment culture, which has delivered outperformance year-on-year since its 2006 inception.

Greencape Portfolio Manager David Pace said: “We believe Ryan is very well-aligned to Greencape’s high performance culture and fundamental research-driven investment philosophy.”

Mr Green brings over six years’ Australian equities investment analysis and funds management experience.  Most recently he spent three years as Research Analyst within the Australian equities team at Cooper Investors. He also worked at Goldman Sachs JB Were for three years as an Associate Director within the investment banking division. In this role Mr Green advised Australian and global resource companies on capital raisings, M&A and other strategic transactions.

“We look forward to seeing Ryan make a significant contribution to the team and client portfolios, via his proven investment analysis expertise,” Mr Pace added.

Greencape is a specialist, active manager of Australian equity portfolios, focused on identifying investment opportunity through detailed, hands-on, fundamental research.

Greencape offer two funds; the Greencape High Conviction Fund – providing investors the opportunity to invest in a highly concentrated portfolio of between 15 and 40 stocks and the Greencape Broadcap Fund, providing investors with selective small cap exposure alongside larger cap stocks.

Since the inception of both funds on 1 September 2006, the Greencape High Conviction Fund has delivered 9.8% p.a. to 30 June 2014, outperforming its benchmark, the S&P/ASX 200 Accumulation Index by 4.37% p.a. (net of fees). The Greencape Broadcap Fund has delivered 9.64% p.a. to 30 June 2014, also outperforming its benchmark, the S&P/ASX 300 Accumulation Index, by 4.38% p.a. (net of fees).

The post Greencape appoints Australian equities specialist Ryan Green appeared first on AdviserVoice.

With over seven years’ experience in Australian equities and corporate accounting, Koh was most recently Vice-President, Equity Analyst, with BlackRock’s Fundamental Asian equity team. At BlackRock he was responsible for stock picking across the Australian market, focusing on stocks within the resources, energy, transport, infrastructure and A-REITs space.

Prior to joining BlackRock Koh served a brief stint with PricewaterhouseCoopers in their Corporate Finance & Recovery division as an executive across business recovery, forensic accounting and transaction services. Koh holds a Bachelor of Commerce and Bachelor of Information Systems both from The University of Melbourne.

Greencape, has $3.97bn in funds under management* and is lead by experienced investors Matthew Ryland and David Pace both ex Merrill Lynch/Black Rock.

Portfolio Manager Matthew Ryland said: “Having previously worked with Jonathan at BlackRock we have great respect for his abilities and believe he will make a strong contribution to managing Greencape’s portfolio,” Mr Ryland said.

The post Greencape appoints Australian equities specialist appeared first on AdviserVoice.