It is also establishing a responsible entity, which will bear a similar name to the fund manager’s brand. “We’ve pushed the retail button,” Microequities chief executive Carlos Gill said.
The fund has now built a 12-month track record and has commitments that will see it grow to $8 million by the end of May. The deep value fund is a high-conviction product with a growth/value investment style. “We don’t buy companies at fair value,” Gill said.
“We buy them at a discount. That way we build in a buffer and reduce risk.”
The fund has had a good first year. Since its inception in March 2009, it has returned over 100 per cent after fees.
Gill said there was still much growth potential in the market as the recovery had not necessarily been translated in earnings per share.
He said he planned to close the fund when it reached $100 million in size.
Gill said he was also exploring the possibility of launching a second fund that would place more emphasis on participation in public listings and capital raisings.
