BALANCE SHEET EXPOSURE
We invest in ASX listed Equities under two distinct strategies:
Short to medium term opportunities to participate in recapitalisations via sub-underwritten placements and event driven including acquisitions, institutional sell-downs or overreactions to market events.
Strategic Small Cap & Private Opportunities
Prior to listing on the ASX we can assist in adding institutional insights and credibility to an emerging company, including strategic advice and acquisition opportunities.
Assistance with recapitalising ASX listed companies to assist in either strategic acquisitions or refinancing.
Repositioning ASX listed equities that have under performed expectations or have lost support of key stakeholders.
Generated an absolute return in FY22 of 10% that materially outperformed the Small Ordinaries Accumulation Index return of negative 23% over the same period.
The H&G Opportunities Portfolio provides the H&G balance sheet with exposure to select deeply analysed core strategic listed and unlisted long-term investments.
H&G Opportunities Portfolio’s mandate is intentionally very flexible allowing it to invest across the micro & large company spectrum, including global listed and unlisted investments when compelling value arises. It also provides a source of short-term investment trading profits during times of market dislocation.
The H&G group believes smaller capitalised ASX listed companies are a source of significant potential long-term investment performance and are often effectively private companies with limited liquidity and access to capital.
In the current environment, where Microcap companies access to equity capital markets is effectively closed, there is abundant opportunities & a natural overlap with the High Conviction Fund's investment style.
This presents a unique window for the broader H&G group to work collaboratively with investee company’s management teams to find solutions. In doing so, H&G can obtain attractive investment terms for its capital and corresponding highly valued skills offering.
As we look forward to FY23, we anticipate creating value through recapitalisation solutions, active management of undervalued, counter-cyclical and undervalued strategic holdings, and strategic investee company mergers and acquisitions.