The System Capital Long Short Fund seeks to achieve strong absolute returns by identifying pricing inefficiencies between the valuation of a business and its structural position over time.
The System Capital Long Short Fund focusses on global companies with strong and growing cashflows and a stronger competitive position over the medium term.
We examine changes in industry structure, returns on incremental investment, management incentives, and whether there is hidden value in the capital structure that can be unlocked over time
The Fund is not constructed with a specific investment thematic or strategy, which allows it to find strong cashflow businesses across both value and growth stocks in a range of industries.
The Fund has flexibility to adjust market exposure (net long) to protect the portfolio from market dislocations and to short individual securities to take advantage of structural winners and losers in specific industries.
The aim is to achieve consistent absolute returns and greater downside protection for investors.
You should read the Fund’s Product Disclosure Statement (PDS) and Target Market Determination (TMD) to ensure the key attributes of the Fund as described in the PDS and TMD aligns with your objectives, financial situation and needs.
Investment Objective
The Fund aims to achieve a 10% return (net of fees) over rolling 5 year periods.
System Capital Long Short Fund
| Description | Global long short fund focused on achieving attractive absolute returns over the medium to long term. |
|---|---|
| Sector & Geographic Focus | Focus on technology, telco, real estate, utilities, infrastructure, media, gaming, diversified financials, and industrials in developed markets. |
| Number of Positions | 20-80 (typical number 20-50) |
| Typical Net Long | 75% |
| Min-Max Net Exposure | 0% -150% |
| Min-Max Gross Exposure | 50% - 250% |
| Typical Stock Position | 3% to 7% for long positions and 1%-3% for short positions |
| Maximum Stock Position | 15% |
| Unlisted Investments | Limited to 10% of fund and must have firm commitment to list on exchange within 12 months. |
| Shorting | The fund may short to hedge its market exposure, engage in relative value trades or short specific stocks. |
System Capital Pty Ltd (ABN 14 657 739 323) (System) is the investment manager of the System Capital Long Short Fund (ARSN 683 513 948) (the Fund). Fidante Partners Limited (ABN 94 002 835 592 AFSL 234668) (Fidante) is a member of the Challenger Limited group of companies (Challenger Group) and is the issuer and responsible entity of the Fund. System is a corporate authorised representative of Fidante (Authorised Representative Number 001309928). You should read the Fund’s Product Disclosure Statement (PDS) and Target Market Determination (TMD) to ensure the key attributes of the Fund as described in the PDS and TMD aligns with your objectives, financial situation, and needs.