System Capital is an absolute return equities investment manager focusing on the dynamics of a business’ ecosystem.
System Capital was founded in 2022 by Lev Margolin, ex-portfolio manager of L1 Capital. Our team has over 20 years of experience and a strong track record of risk-adjusted returns.
System Capital is majority-owned by its investment staff, maintaining a strong focus on investing alongside their clients.
Our Name
System Capital believes that understanding a business’s strength relative to its business ecosystem is crucial to its performance over time.
We define a business ecosystem as the interconnected network of suppliers, customers, competitors, regulators, governments, and new entrants that influence a business’s economic returns. The team focusses on identifying opportunities where a business’s strength – measured by its relative bargaining position and share of economic value – continues to grow over time, positioning it for sustained success and value creation.
Our Team
Lev Margolin
Portfolio Manager
Lev is the Founder and Portfolio Manager and has 15 years of experience in funds management, including eight years as a portfolio manager of the L1 Capital Long/Short Fund.
Vishal Hargovan
Senior Investment Analyst
Vishal is a Senior Investment Analyst specialising in the online services, information services, gaming, branded consumer goods, manufacturing, software, and healthcare sectors.
Michael Aynbund
Senior Investment Analyst
Michael is a Senior Investment Analyst specialising in the telecommunications, media, payments, aerospace, and information services sectors.
Lev Margolin
Lev founded System Capital in 2022 and has 15 years of experience in funds management, including eight years as a portfolio manager of the L1 Capital Long/Short Fund.
Prior to L1 Capital, Lev’s experience includes M&A and corporate strategy with leading firms such as Babcock & Brown, Allco, and National Australia Bank (NAB). He holds a Bachelor of Commerce (Honours in Actuarial Studies) and is a CFA Charterholder.
Vishal Hargovan
Vishal is a seasoned investment professional with deep expertise in investment and industry research, as well as advanced financial modeling across sectors including online services, information services, gaming, branded consumer goods, manufacturing, software, and healthcare.
Before joining System Capital, Vishal’s experience includes various analyst, energy infrastructure, scenario testing, derivatives and market risk related roles with leading firms including River Capital, Equis Funds Group, National Australia Bank, JP Morgan, and Credit Suisse. Vishal holds a Bachelor of Commerce (Honours) - Actuarial Studies from Melbourne University, a Master of Applied Finance from Macquarie University and attained Associate level qualification of the Institute of Actuaries Australia.
Michael Aynbund
Michael is an experienced investment professional with extensive knowledge in investment and industry research, along with advanced skills in financial modeling across sectors including telecommunications, media, payments, aerospace, and information services.
Prior to System Capital, Michael’s experience includes various analyst roles at L1 Capital and Intrinsic Investment Management. Michael holds a Bachelor of Laws and Bachelor of Commerce from Monash University.
Our Process
Our strategy focuses on finding businesses that can generate attractive free cashflow returns and strengthen their competitive positioning over time. The portfolio is grouped around the following three focus areas:
Core Cashflow Franchises
Businesses featuring an attractive valuation, predictable cash flow, increasing barriers to entry, and dividends well-covered by cash distributions.
Digital Infrastructure Companies
Businesses that are essential to the functioning of the digital economy, with strong pricing power, growing barriers to entry, and solid cash flow potential.
Hidden Value Businesses
Businesses offering strong free cash flow currently in conglomerate structures, legacy businesses with unique opportunities for growth and market re-rating. A distressed valuation provides a high margin of safety.
Our investment process includes four key steps.
Idea
Generation
- Key Industries
- Quantitative Screening
- Catalysts
Research &
Analysis
- Checklist
- Model Build
- Quality Scores
- Corporate Meetings
- Review
Ranking
Sheet
- Valuation Score
- Quality Score
- Ranking
Portfolio
Construction
- High Scoring Ideas
- Portfolio Risk Factors
- Diversified Portfolio Across Each Focus Area
- Reappraisal
Our Partner
Fidante is a global investment management business which forms long term alliances with best-in-class investment managers.
For these highly skilled managers, Fidante’s strategic, operational and distribution expertise gives them access to a large global investor base while enabling them to focus on what they do best – managing money.
Fidante is a global investment management business and forms part of the Challenger Limited Group, an ASX-listed investment management firm (ASX:CGF).