Spheria Asset Management was set up earlier this year by former Schroders’ portfolio managers Marcus Burns and Matthew Booker.
According to Mr Burns, the pair aim to “optimise returns for investors” by limiting their funds under management capacity and to invest in a more targeted portfolio, with a minimum initial investment of $25,000.
“There is great opportunity in this market but also a lot of risk for the inexperienced,” said Mr Booker.
Spheria plans to invest in “free cash flow positive” businesses with scope for growth to minimise risk for the investor, according to a statement from the firm.
Research published by research house Lonsec in March 2016 this year found Australian small cap shares outperformed the ASX200 Index throughout 2015, with the average small cap fund returning 12 per cent.
Lonsec general manager of equities Peter Green said small caps had “provided better insulation from the recent selloff” but warned that investors would need to be “vigilant” in order to get similar returns in 2016.
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