Below is extracted from paridice WEB site stating what they look for in small cap company's, sxy definitely fits within there investment strategy.
The Fund typically invests in 50-70 companies listed outside of the S&P/ASX 100, providing investors with an exposure to a diversified portfolio of emerging Australian businesses.We believe equity markets are often inefficient due to investor emotion, short-term thinking and too much reliance on a single aspect of a company’s financial health – it’s profit and loss statement. Our key focus is on management, current and future cash flows and the quality of the balance sheet.Our expertise lies in evaluating a company’s market position taking into account all factors from balance sheet, macroeconomic drivers through an extensive visitation program.ObjectiveThe Paradice Australian Small Cap Fund aims to outperform the S&P/ASX Small Ordinaries Total Return Index over the longer term, before the deduction of fees and taxes.
