- Spatium Capital announced that it will embrace its quant brand
- Outperformed ASX Small Caps benchmark by 53% over five years
- Advisers have understood our branding as they want quant managers
- Not a black box – Spatium team built the software and runs it actively
Melbourne-based Spatium Capital announced that it will embrace its quant identity as it releases its five-year performance figures.
The small-caps manager has outperformed the ASX Small caps benchmark by 53% over five years.
“We are pleased that our home-grown investment process has seen the Fund outperform in 16 of 20 quarters across falling, flat and rising interest rate climates.
“Essentially we have always been a quant manager. Our framework and rules-based approach was always quant at its centre. We’re now leaning into this label to better capture the Australian market’s interest as to why this approach should be considered for portfolios,” said Nicholas Quinn, Spatium Capital.
“Advisers and Family Offices have understood our branding as a quant manager. They are seeing many quant funds operating in the US to produce risk-adjusted returns. They respect that it is not a black box that runs itself. We built the framework and rules over 10 years and continue to actively manage it daily.
“By looking at the market through a lens that significantly differs from its peers, Spatium Capital is able to capture outperformance with less beta and portfolio variance than the market. The Fund has a 67.7% downside capture ratio and upside capture ratio of 101.2%,” said Jesse Moors, Spatium Capital.
The Spatium Capital quantitative approach is resilient through all cycles and has experienced three major drawdowns in the lifetime of Spatium Capital’s quant strategy:
Spatium % | ASX Small Caps % | |
Q4 of 2018 | -3.7% | -10.2% |
COVID crisis & recovery of 2020 (Mar to Jun 2020) | +23.1% | -4.7% |
CY2022 – Central Bankers start hiking rates | -13.7% | -20.7% |
Spatium Quantitative Model
The strategy uses a quantitative model developed by the Directors over the past 10+ years. The factors of momentum, small capitalisation, and mean reversion are considered key elements of the strategy. No fundamental research or sector views are taken.
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 awarded Spatium Capital an Approved rating for its Small Cap Fund in 2022 and is currently reviewing the Fund for its annual review.
SQM’s Fund description of Spatium Capital:
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 size, and mean reversion are considered elements of the strategy. No fundamental research or sector views are taken.
SQM Research considers this strategy will have a low correlation with many other small-cap Funds over the long term.