How It Works
The WaveStone Dynamic Australian Equity Fund aims 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 identifies 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 Dynamic Australian Equity 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 – minimum net 50% exposure (long positions less short positions) to the market and maximum 100% net
- 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.