The investment philosophy and process of PFM will leverage the experience of the principals whom have successfully executed such a strategy for over 20 years.
This investment philosophy involves identifying investment opportunities and undervalued companies listed on the Australian Securities Exchange (ASX), with predominant focus in the small-mid cap sectors (companies typically capitalised between $10m and $250m).
PFM have a predominantly resource-focused approach, with the ability to invest in other sectors when suitable opportunities arise.
With the majority of Australian fund managers being located on the east coast of Australia; and with the POF investment team being based in Perth, the team will look to leverage their considerable network in the resources space and maximise this competitive advantage.
Whilst the fund will focus on listed equities, early stage mining deals rarely make it across the Nullarbor at a seed and Pre-IPO funding level. The POF Investment team has the technical and corporate skill set to assess early stage opportunities.
These types of transactions are typically not available to the broader international investment community.
The POF team will screen every investment opportunity by following a rigorous project evaluation screening process by:
- Assessing the quality of the asset.
- Benchmarking the project to comparable developments.
- Assessing the quality of the management team and the ability of the management team to acheive their stated goals and objectives with the project.
- The Investment Manager employs a structured, multi-stage investment process that involves detailed financial modelling and technical assessments in moving from the universe of potential investments.
- To then derive its own valuation on the project to determine the exit strategy once the project achieves these milestones.