BACKGROUND
Precision Opportunities Fund Ltd ("POF") is a boutique investment vehicle that identifies emerging opportunities and undervalued companies listed on the ASX and other recognised exchanges.
POF aims to identify and invest in undervalued companies listed on the ASX and other recognised exchanges. The investment focus will be predominantly in the small-mid cap sectors which are companies typically capitalised outside the ASX100. The Investment Manager may invest from time to time in unlisted opportunities that have a clear path to market or exit. Through its exposure to the Investment Manager’s network and skill-set, POF intends to provide its Shareholders with access to opportunities not generally available to investors using traditional methods of equity investment.
OBJECTIVE
To identify and invest in undervalued or emerging companies listed on the ASX or other recognised exchange or unlisted securities which are within 12 months of listing on a recognised exchange with the aim of producing superior returns to investors.
SUITABLE FOR
POF is suitable for investors who wish to gain exposure to small-mid cap companies and are willing to accept highly volatile returns and increased levels of risk over the short term, including returns which could be negative, with the aim of seeking higher returns over the medium to long term. The Company should only be considered by wholesale investors with a significant risk tolerance and a long-term investment time horizon
INVESTMENT PARAMETERS
The following table of parameters represents a guide as to how the Company will invest and this may be subject to change at the discretion of the Directors in consultation with the Investment Manager.
| Size | Companies invested in will generally have a market capitalisation less than $1 billion. Typically, they will be outside the ASX100. |
| Exposure Limits | No individual investment will comprise more than 10% of the portfolio value at the time on the initial investment but the Company may hold more than 10% of its portfolio value in any one investment if it result from the underlying performance of the initial investment. Any individual investment that grows to over 15% of the total portfolio value will be actively and diligently managed by the investment manager, with the view that no individual investment will exceed 20% of the total portfolio value. |
| Consultation with the Investment Manager. | The Company is permitted to borrow or short sell securities provided that in total, this will comprise not more than 20% of the portfolio value. The company does not use derivatives, |
| Unlisted Investments | No more than 10% of the portfolio value will be invested in unlisted security at the time of investment. These investments are pre-initial public offering and will be typically near to listing or exit (within 12 months as a maximum). |
| Cash | In the absence of compelling investment opportunities the Company may hold significant level of cash at any given time. |
| Liquidity/Trading | The Company can invest in short-term trading opportunities that are momentum and sentiment driven in companies with acceptable levels of liquidity. |