The structure and process of the fund reflects the manner we believe is most likely to deliver the optimal long term outcome for the investment of our own capital.
The fund is an unlisted trust and is domiciled in Australia. While we maintain an active interest in the opportunities in the Australian and New Zealand markets, the fund will consider a broad range of assets for investment.
Risk is controlled through limits on individual investments and underlying fundamental research. At times the fund may hold a significant level of cash.
The investment process is based on the belief that markets generally price assets correctly but occasionally there are unique investment opportunities. Our focus is to identify these unique investment opportunities, perform rigorous fundamental analysis around these ideas and ultimately invest capital based on this research.
The Information Memorandum can be downloaded via the following link – Long Tail Partners No1 Fund – Information Memorandum – (1 December 2021). The redemption form is available here.
Summarised below are some of the terms of the Long Tail Partners No.1 Fund
Investors
The following table provides basic information on who can invest in the fund, fees and other information. Please refer to the Information Memorandum for details.
Eligible investors |
Wholesale investors only within the meaning of section 761G of the Corporations Act |
Minimum initial investment (and minimum holding) |
$500,000 |
Application / redemption frequency |
Daily |
Management fee |
1.25% (+GST) per annum |
Performance fee |
Nil |
Expenses |
The fund incurs a range of costs and expenses |
Application / redemption fee |
0.25% for each application and redemption to cover fund transaction costs |
Unit pricing |
Daily |
Distributions |
Quarterly |
Allowable Investments
The fund may invest in a wide range of domestic and foreign assets, including:
- Shares;
- Hybrid securities;
- Fixed interest securities, debentures and other debt instruments;
- Cash;
- Commodities;
- Property;
- Managed investment schemes;
- Government bonds;
- Foreign exchange; and
- Derivatives (including futures, forwards and swaps).
The above list of allowed investments is a summary only and is not a complete list of investments allowed by the fund’s Constitution.
The investments held by the fund may be listed or unlisted.
The fund may short sell securities.
Investment Guidelines
The following table summarises the fund’s investment guidelines. While the Manager will have regard to these guidelines in managing the fund, these guidelines are not investment limits and the fund may materially exceed any or all the guideline thresholds for a short or prolonged period.
Investment Guidelines |
Number or Net Asset Value of the Fund (unless otherwise stated) |
Maximum number of investment tenets[1] held by the Fund |
10 |
Minimum number of investment tenets held by the Fund |
0 |
Maximum individual investment positions[2] per investment tenet |
10 |
Minimum individual investment positions per investment tenet |
1 |
Maximum Fund exposure to any single investment tenet |
20% |
Minimum Fund exposure to any single investment tenet |
5% |
Maximum individual investment position relative to size of the fund |
15% |
Minimum individual investment position relative to size of the fund |
1% |
Maximum cash holding of the Fund |
100% |
Maximum gross investment exposure[3] |
115% |
Maximum short exposure |
30% |
[1]An investment tenet represents one or a number of individual investment positions based around a single investment thesis. The Manager will decide which individual investment positions fit within each investment tenet.
[2] An individual investment position refers to, for example, each stock or bond holding.
[3] Gross investment exposure refers to the aggregate of “long” positions and short sale positions held by the Fund. A “long” position in a security, such as a stock or a bond, means the holder of the position owns the security and will profit if the price of the security goes up.