The Spatium Small Companies Fund (SSCF) has received an undisclosed investment amount from Singaporean wealth manager, Conduit Group. Conduit, an integrated financial services company that offers securities dealing, wealth and funds management, invested in the SSCF via their Discretionary Fund, the Asian Wealth Fund (AWF).
Chief Investment Officer of the AWF, Jesse Aarnio, believes the quantitative Spatium Small Companies Fund provides an attractive return profile for the AWF’s Australian equities basket and client base.
Director of Spatium Capital and Co-Portfolio Manager of the SSCF, Nicholas Quinn, highlighted that this is a strong signal to the market that the ensuing volatile market conditions will require global managers to think differently about how they are exposed to Australian equities.
“Since establishing Spatium Capital, there has been the stock market slowdown of late 2018 (driven by a correction in residential housing prices), the COVID-19 pandemic which triggered one of the sharpest downturns in market history and now the recent inflation and rising-interest rate climate of 2022 which saw the S&P/ASX Small Ordinaries contract some -20%+ in 2022.
“Throughout all these events, the SSCF has remained committed to maintaining a high-turnover approach for the portfolio which has, in-turn, resulted in strong downside risk protection, lower volatility and a lower beta profile than the market.
We believe that the Spatium Capital investment strategy offers wholesale clients and advisors exposure to differentiation through our quantitative approach that applies an equally-weighted process to portfolio construction. Furthermore, strong defensive characteristics to a segment of the market that is often plagued with higher risk should be considered strongly in this volatile environment,” said Mr Quinn.
“Investing in the Spatium Small Companies Fund fits with our view that managing risk in a portfolio is becoming paramount. We are seeing more institutional managers beginning to seriously reconsider risk in their portfolios and pivot accordingly. Conduit is delighted to have this opportunity to work closely with quant pioneers like Spatium Capital who not only manage risk in a disciplined manner but consistently produce above market performance” said Mr Aarnio.
MEDIA CONTACTS
Nicholas Quinn
Spatium Capital
Director & Co–Portfolio Manager
0437 175 038
nicholas.quinn@spatiumcapital.com
www.spatiumcapital.com
https://www.linkedin.com/in/nicholasquinn-spatiumcapital/
Jesse Moors
Spatium Capital
Director & Co–Portfolio Manager
0422 040 119
jesse.moors@spatiumcapital.com
www.spatiumcapital.com
https://linkedin.com/in/jessemoors
SQM Research awarded Spatium Capital an Approved rating for its Small Cap Fund in 2022 and is currently reviewing the Fund for its annual review.
SQM Research’s description of the Spatium Small Companies Fund:
The Spatium Capital Small Companies Fund (the Fund) is an actively traded portfolio of approximately 25-to-40 listed companies, turning over each position in the portfolio, on average, every 30-to-45 days.
The Fund seeks to identify and capitalise on mispriced and short-term equity price dislocations.
The trading strategy uses a quantitative model developed by the Directors over the past 10+ years. In terms of the commonly known factors, momentum, small capitalisation, and mean reversion are considered key elements of the strategy. No fundamental research or sector views are taken.
SQM Research considers leveraging on the strength of Singapore as a financial hub we aim to become the solution
provider of choice to meet the challenges and opportunities presented by a rapidly growing
regional pool of capital increasingly migrating from Europe and North Asia. His strategy will have a low correlation with many other small-cap funds over the long term.
About Conduit Group
Conduit Group provides a differentiated approach to global markets and asset management, offering transparent execution and access to liquidity in capital market products via Conduit Securities and unique advisory, wealth management and asset allocation through Conduit Asset Management.
Dual-licensed, headquartered in Singapore, with offices in Geneva and Helsinki, Conduit offers comprehensive, independent solutions through transparent best-price capital market access, discretionary and advisory mandates, family office solutions and funds offering bespoke strategies as well as direct investment opportunities.
Contact: info@conduit.group
https://www.conduit.group/conduit-group