How It Works
The WaveStone Absolute Return Fund (the Fund is an Australian equity long/short fund. The Fund’s aim is to provide capital growth over the long term. WaveStone believe that share prices, over time, typically reflect the growth in the level of a company’s earnings. In the short term, the market may misprice a company’s underlying medium to long-term earnings potential. WaveStone identify higher growth companies where the market is generally not paying for that expectation. WaveStone is an active, research-focused investment manager and its investment approach is to:
- Identify businesses with Superior Corporate DNA that operate within favourable industry dynamics that deliver above market earnings growth. These quality companies display a Sustainable Competitive Advantage (SCA)
- Exploit inefficiencies whereby the market mis-prices the underlying medium to long term earnings potential.
The WaveStone Absolute Return Fund has the ability to:
- Hold between 25 and 50 stocks of securities listed on the Australian and New Zealand stock exchanges
- Vary its exposure to the stockmarket – operates between net 0% to 100% exposure (long positions less short positions)
- Short sell up to 10 listed securities
- Hold cash and futures
- Gear the fund by borrowing cash to invest in securities
- Use derivatives to potentially deliver less risk.
Please read the full Information Memorandum (How to Apply TAB) for further information.