The Accordius Australian Small Cap Share Portfolio (the ‘Portfolio’) is managed by Accordius Pty Ltd (‘Accordius’). Accordius was established in 2007 and is owned by Janus Financial Pty Ltd, a large Melbourne based financial services provider. At Accordius, we have a flat structure of very experienced people with decades of experience, particularly in small caps, where people, ideas and views are respected. We enjoy working together and helping our clients build wealth through the transparency of a managed account. The Portfolio is actively managed, non-unitised and available through HUB24’s Managed Portfolio Service.
The Portfolio’s objective is to achieve returns in excess of the benchmark (after fees) over a suggested minimum timeframe of 5 to 7 years, with its benchmark, the S&P/ASX Small Ordinaries (TR) index. The Portfolio has been designed for investors with a long-term investment objective and an appetite for risk, seeking diversification opportunities outside the ASX Top 100 with a focus on strong capital growth through exposure to smaller, emerging companies. Small cap stocks in particular offer superior returns as this market is usually the least efficient given less broker coverage and can offer higher growth rates as they are often in the early stages of expansion.
Our investment philosophy is to buy businesses, which we can value with reasonable certainty, below their intrinsic value, but with a clear understanding/assessment of the risks involved. Quality is assessed on certain financial metrics, incorporating market/peer comparisons and an evaluation of company management. We believe that a portfolio ideally of around 20-25 stocks not only provides sufficient diversification, lowering portfolio risk, but also enables our best ideas to meaningfully impact on overall performance. The Portfolio is managed on a GARP (Growth At Reasonable Price) style basis. Our approach is fundamental, driven by curiosity sparked by discovery or change. We aim to invest in companies where we have identified several catalysts to grow earnings or where earnings could be re-rated. These companies must be understandable businesses run by competent management in sustainable robust industries at attractive prices. We are prepared to be contrarian and often this is the case.