ASX: HCF
H&G High Conviction Limited is an investment company with a focus on risk adjusted returns through constructing a high conviction portfolio of microcap ASX-listed companies.
*Includes the original vehicle since inception, H&G High Conviction Fund, launched in November 2007, and the pre-tax performance of H&G High Conviction Limited from 23 June 2022.
The strategy of investing in micro capitalisation listed equities has remained consistent.
Historical performance is not a guide to future performance.
Performance to
30 September 2023
(pre tax, after all fees)
3
Months
12
Months
2
Years
p.a.
3
Years
p.a.
7
Years
p.a.
10
years p.a.
Since inception
p.a.
H&G High Conviction
pre-tax total return
1.4%
10.5%
8.9%
15.8%
5.1%
9.0%
7.5%
ASX Small Ordinaries Accumulation Index
-1.9%
6.9%
-8.5%
2.6%
4.5%
5.1%
0.8%
Outperformance
3.3%
3.6%
17.4%
12.8%
0.6%
3.9%
6.7%
*Performance data, as applicable, includes the original vehicle, H&G High Conviction Fund, launched in November 2007, until 23 June 2022, and the performance of H&G High Conviction Limited since 23 June 2022. Performance of H&G High Conviction Limited is calculated monthly as profit before taxation divided by opening net assets (adjusted for capital movements and dividends during the month, if any).
Investment Team
Investment Philosophy
Joseph Constable
Director & Portfolio manager
Arthur Fokschaner
Investment Manager
H&G High Conviction invests on a multi-year horizon in a concentrated portfolio of ASX-listed microcap companies, a niche segment of the market.
Microcaps are a segment of the market that is overlooked by the majority of institutions due to size, meaning frequent inefficiencies in security prices and opportunities to buy stakes in businesses at attractive valuations.
By insisting on paying low prices for good value in companies with aligned management and creating a margin of safety via thorough research and informational edge, HCF targets double digit risk-adjusted returns over the market cycle.
As a key differentiator, HCF actively engages with investee companies. This is crucial for microcaps, where success is heavily reliant on a small group of key people. We leverage this strategic approach to help unlock the full value of management teams and core assets.
Our primary goals are to minimise capital loss and focus on long-term capital growth and income from portfolio companies.
Our History
In June 2022, H&G High Conviction Limited was formed and acquired
its initial investment portfolio of cash and ASX-listed securities in exchange for shares in H&G High Conviction Limited.
H&G High Conviction Limited has appointed H&G Investment Management Ltd as its investment manager and adopted the investment strategy described below.
Approximately 75% in value of the initial investment portfolio was acquired from the H&G High Conviction Fund. The H&G High Conviction Fund was launched in November 2007 by the Manager (then named 'Supervised Investments Australia Limited').
H&G Investment Management Ltd has been the investment manager of the H&G High Conviction Fund since its inception and over this period has adopted a fundamentals-based investment strategy focused on investment in micro capitalisation companies, which is consistent with the company's investment strategy described below.
Board
David Groves
Chairman
David has over 25 years’ experience as a company director.
He is Chairman of Tasman Sea Salt Pty Ltd and is a Non-Executive Director of Pengana
Capital Group Limited (ASX: PCG), Pengana International Equities Limited and Redcape
Hotel Group Management Ltd as responsible entity of the Redcape Hotel Group.
David is also the Chairman of the Audit and Risk Committee and member of the Nomination and
Remuneration Committee for Pengana Capital Group Limited (ASX: PCG) and a member of the Council of Wollongong University. He is a former director of EQT Holdings Ltd, Tassal Group Ltd and GrainCorp Ltd and a former executive with Macquarie Bank Limited
and its antecedent, Hill Samuel Australia.
David has a Bachelor of Commerce from the Wollongong University and a Master of Commerce from the University of New South Wales, and he is a member of the Institute of Chartered Accountants Australia and New Zealand.
Important Information & Documents
Share Registry
Registry Direct Limited
PO Box 18366
Collins Street East
Melbourne VIC 8003