Datt Capital, a boutique Australian equity investment manager, is using its experience in absolute return funds to launch a new fund in the small cap space.
Emanuel Datt, chief investment officer of Datt Capital, said the company had identified a number of investment prospects in the small company space and believed an unconstrained small-cap fund would perform well relative to the index.
“This is particularly appropriate in the current market, given our expectations for small caps to outperform due to their attractive valuations,” Mr Datt said.
The Datt Capital Small Companies fund has a minimum investment of $50,000, making it particularly appropriate for SMFSs.
“We believe this new fund will fill a sizeable niche for investors looking to take advantage of much of the latent value opportunities within the small company sector,” Mr Datt said.
“The Future Fund, Australia’s largest institutional investor, has recently allocated capital to active small-cap managers providing demonstrable appetite and institutional recognition of the present alpha on offer within the Australian small cap space.
“The end of zero interest rate policy and the end of the dominance of private market capital presents a smorgasbord of small cap opportunities which are mispriced relative to large cap peers.”
