The consistent outperformance along with the fact Andrew...

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El Jefe

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13/05/18

10:40

Post #: 33060034
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Originally posted by Occam Logic ↑

It's a bit hard to get performance information on the original Paradice funds (insto only). They do have retail versions of their strategies, but these are all more recently launched (i.e. 2017). These do have generally solid performance albeit over a very short period.

Their claim that the Paradice fund beat the benchmark by more than 20% per annum from 2007-2011 is certainly feasible, but not outstanding. Small cap funds like Hyperion and Karara did even better. Ironbark did ~25% over benchmark (Small Ords), while Hyperion did over 40%. But to be fair, plenty of other small cap funds failed to even beat the benchmark during that period (OC for example). So I'd say it was a credible result for Paradice.

Ultimately, one of the biggest problems with small and microcap fund is one of capacity. Some of the best performing funds are capped out and no longer taking new investments. So finding a quality fund with capacity is difficult. Ophir are not capped out yet, but they are getting there.

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The consistent outperformance along with the fact Andrew Mitchell states;

“The founders have all their personal investments in the Ophir funds. The Ophir investment staff all have significant investments in the funds. “

Holds a lot of weight.

From your chart above I see none of the names there from the ones you mentioned in your last post, Hyperion, Karara, Ironbark so all roads point to Ophir being a standout over a longer period. I can only put this down to the fact Imo that they carry out extensive due diligence likely above what others do and the very small but strong team means everyone has to pull there weight not only because they are incentivise to do so but because they will drag all other players down if they don’t. Tribe of mentors!!

I didn’t think there would be many funds with those returns over that period of 2007-2011 considering they are the peak years of the GFC. I just looked at Paradice offerings this morning and they are dismal apart from one fund which was set up less than 12 months ago. You say that some of the best funds are capped out and not taking new investors, are these the ones from your graph posted above or others?
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