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High Income Value Microcap Fund
– Investment Approach

Microequities is a fundamental deep value investor focused on growing companies with a performance track record and an undervalued share price. We use a bottom-up approach to investing. Fundamental analysis of companies is undertaken using various models and key indicators to value companies before consideration of inclusion for investment by the Fund.

We conduct research that includes information gathering from customers, suppliers and competitors. As part of the investment process, we conduct face to face meetings with company’s senior management to gain valuable insights into the operations of the company’s business units, strategy and plans. We will only invest the Fund in businesses that we understand and that have a historical track record of earnings.
Some of the factors that may be looked at when considering an investment by the Fund:

  • Companies with a well-established business model
  • Companies generally should be at least 2 years or longer EBITDA profitable
  • Companies with low manageable debt or no debt are preferred
  • High cash flow generating businesses
  • Companies with high earnings visibility and disclosure
  • Companies with a predictable future earnings stream
  • Companies in a growing sector
  • Companies that have a growth catalyst division, product or service
  • Companies with a highly competitive advantage or brand name
  • Companies with a stable management and track record for delivering value to shareholders
  • Companies where management has a significant stake
  • Companies with a reputable board of directors

To contact the Fund Manager please call (02) 9231 6169 or email invest@microequities.com.au