First Sentier launches Small Cap Long Short fund

Oksana Patron

10 October 2022

First Sentier Investors has launched its new Australian Small Companies Long Short Opportunities Fund which will be available to both wholesale and retail investors.

Dawn Kanelleas, Head of Australian Small and Mid Cap Companies, said the strategy aimed to identify high-quality companies, with a potential to grow into mature businesses, “at the beginning of their journey”.

“As small companies flourish, revenue and earnings growth have the potential to expand at their fastest rate in the company’s lifecycle – growth that larger, more mature companies can find difficult to replicate from a higher base,” she said.

At the same time, strategy’s ability to short sell stocks meant it also had the potential to generate positive returns from companies that would be expected to go down in value.

“Our team is focussed on downside risks as much upside potential. The aim for capital preservation is a key tenet of our investment philosophy which lends itself to identifying short opportunities,” Kanelleas added.

The FSI Australian Small and Mid Cap Companies team has been managing a long short strategy for their institutional clients since 2008 and had in-depth research of smaller companies in Australia, the firm said.