Microequities Asset Management Group Ltd. · ASX:MAM
Microequities Asset Management — Investor Presentation (November 2010)
14 slides from Microequities Asset Management's investor presentation, Nov 2, 2010
Slide 1: Deep Value Microcap Fund Presentation
DEEP VALUE MICROCAP FUND PRESENTATION Four Seasons Hotel, Sydney Tuesday 2nd November 2010
Slide 2: Disclaimer
DISCLAIMER Microequities Asset Management Pty Ltd ABN 96 134 984 768 (also referred to in this document as “Microequities Asset Management”, “the Trustee”, “the Manager”, “us”, “we” and “our”) is the trustee and investment manager of the Microequities Deep Value Microcap Fund (“the Fund”) ABN 20 869
Slide 3: About Microequities
ABOUT MICROEQUITIES Founded 5 years ago ASIC licensed investment fund manager Begun as an independent research house focused exclusively on Microcap investing & research Expanded into funds management in 2009 Research activities present us with a strategic asset Team of 4 analyst + CIO Two non indep
Slide 4: The Deep Value Microcap Fund
THE DEEP VALUE MICROCAP FUND High Conviction, 17 Positions Investment universe: Sub $250M Mkt Cap Only ASX listed companies, no private equity Fund has two assets Cash and equities Fund has no debt, no derivatives Invest for the long term, generally 3 to 5 year investment horizon. Our investment sty
Slide 5: Macro Overview
MACRO OVERVIEW Internationally Developing world main drivers of world economic growth, China, India, Brazil, and SE Asia. US will avoid double dip, Euro zone sluggish but growing Panic spread, bank run in some countries Domestically Australia enjoying boom like conditions Expect above average GDP Gr
Slide 6: Why This Asset Class?
WHY THIS ASSET CLASS? Microcap companies have higher growth rates Information Asymmetry Inefficient Market pricing Inefficient Market Deep Value Opportunities 2nd November 2010 7
Slide 7: The Two Engines of Our Outperformance
THE TWO ENGINES OF OUR OUTPEFORMANCE Our fund has two profit engines • Faster Growth Earnings • Long term capital Growth growth Discount • A 50% discount to fair value= 100% to Fair upside Value 2nd November 2010 8
Slide 8: Our Investment Process
OUR INVESTMENT PROCESS HIGH CONVICTION: There are 1500 Microcap companies out there, we are invested in 17, one out of every hundred Criteria Meet the test Investment Decision Profitable YES/NO NO= No investment Growing YES/NO NO= No investment Balance Sheet YES/NO NO= No investment Deep Discount YE
Slide 9: Our Investment Process
OUR INVESTMENT PROCESS Profitable companies are short listed If they meet initial investment parameters, further investment research is undertaken We then proceed to meeting management and make an assessment After due diligence and management assessment, Microequities proceeds to value the business
Slide 10: Our Investment Bedrock
OUR INVESTMENT BEDROCK We buy business for the long-term Business with proven track records and viable models Managed by competent and HONEST management We buy them at deep discount We buy growing profitable business 2nd November 2010 11
Slide 11: Relative Performance, Our Value Add
RELATIVE PEFORMANCE, our value add Value of $100,000, Invested at Inception $220,000 $200,000 $180,000 $160,000 $140,000 $120,000 Deep Value Microcap Fund All Ords Accumulation Index $100,000 May-09 Nov-09 May-10 Aug-09 Sep-09 Oct-09 Aug-10 Sep-10 Jun-09 Dec-09 Jan-10 Jun-10 Jul-09 Jul-10 Mar-09 Feb
Slide 12: Composition of the Fund
COMPOSITION OF THE FUND Portfolio structure reconfigured Set to maximise operating leverage to fast expanding domestic economy 2.0% Cash 1.1% 3.5% Software & Services 4.1% Telecommunications Services 12.9% Food Products Hotels Restaurants & Leisure 5.4% 39.2% Consumer Durables Apparel Media 9.9% Cap
Slide 13: Summary
SUMMARY Prospects Value and growth opportunities remain compelling Corporate earnings growth to resume Early stages of economic boom World economic structural shift highly favourable for Australia Attractive Gross Dividend Yield in the Portfolio (currently 6.0%) We will be making our first distribut
Slide 14: Thank You!
THANK YOU! Contacts Carlos Gil Chief Investment officer 02-9231 6169 [email protected] Sam Gutman Senior Advisor 02-9232 7494 [email protected] 2nd November 2010 15
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