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NGE Capital

About this Fund

Fund Detail

PDS
FUND MANAGER NGE Capital
ASX Code NGE*
APIR
ASSET CLASS LISTED INVESTMENT COMPANY
INVESTMENT STYLE NGE offers investors exposure to an actively managed, concentrated portfolio of high conviction investments.
INVESTMENT PROFILE NGE aims to generate strong risk-adjusted returns for shareholders over the medium to long term.
CURRENCY MANAGEMENT Unhedged
INCEPTION DATE
BENCHMARK N/A
FUND SIZE N/A
DISTRIBUTION FREQUENCY N/A
NO. OF HOLDINGS
FEES
STRUCTURE

Benefits

Benefits

The Company's investment strategy is to invest in a concentrated, high conviction portfolio of financial assets with the aim of generating strong risk-adjusted returns over the medium to long term. NGE has a flexible investment mandate and invests according to a defined set of investment principles that are summarised as follows:

  • Only invest in a compelling opportunity, otherwise hold cash;
  • Invest based on fundamental analysis;
  • Target investments that can generate strong returns with an adequate margin of safety; and
  • Aim to hold a concentrated portfolio of high conviction investments.
RISK LEVEL
INVESTOR SUITABILITY

Risks

Title
Detail

Key Features

About the Fund

NGE Capital Limited is a Listed Investment Company on the Australian Securities Exchange (ASX:NGE). NGE Capital offers investors exposure to an actively managed, concentrated portfolio of high conviction investments. We can invest across all sectors and industries, but in each case our investments are based on fundamental analysis of individual companies. Our aim is to generate strong risk-adjusted returns for shareholders over the medium to long term.

Investment philosophy

Target investments that can generate strong returns with an adequate margin of safety

  • Individual securities can and do significantly deviate away from their fair value

  • Potential to generate strong risk-adjusted returns by investing in select securities at opportune times

Aim to hold a high conviction, concentrated portfolio

  • Only invest in a compelling opportunity, otherwise hold cash
  • Prefer to invest heavily in a small number of high conviction opportunities, than invest small amounts in a large number of less compelling investments

Invest based on fundamental analysis

  • Bottom up stock selection, focusing on the fundamentals of individual companies rather than market trends
  • Conduct extensive proprietary research with a focus on:

  1. Board and management - track record, skin in the game
  2. Credit risk - gearing, debt profile, interest coverage
  3. Earnings - free cash flows including timing and likelihood, margins, payout ratio, growth potential
  4. Valuation - multiples, discounted cash flow analysis, break-up value
  5. Competition - market share, industry position, sensible market operating

Mandate

How we invest your money

NGE Capital Limited (ASX:NGE) is a Listed Investment Company which allows investors to gain exposure to a concentrated, high conviction, actively managed portfolio of financial assets.

We primarily focus on listed ASX and international equities, with the aim of generating strong risk-adjusted returns over the medium to long term.

Investment process

Idea generation

  • Screening
  • Identify mispricing
  • Leverage network of contacts

Proprietary research

  • Fundamental analysis
  • Company meetings / site visits
  • Speak to experts

Investment decision

  • Buy, hold, sell, wait, do nothing
  • Investment committee approval as required
  • Sizing and structure based on risk-reward payoff

Monitor and exit

  • Update assessment for new information
  • Stay on top of the story

Assessment

  • Qualify against investment philosophy
  • Stress test valuation and assumptions
  • Refine hypothesis