AFM Fund Profile — Firetrail Australian High Conviction Fund

Fund & Manager Details

Key Facts

Fund Type: Single Discretionary/Quantitative: Discretionary
Strategy: Equity Long FUM (millions): AU$555m
Style: Blend Fund Inception Date: Since 14 March 2018
Geographic Mandate: Australia/NZ Latest Return Date: March 2024
Fund Domicile: Australia Investor Type: Wholesale & Retail
Status: Open Reporting Status: Current

Manager Details and Fund Description

Manager: Firetrail Investments Total FUM for all funds: AU$1,098m
Manager Overview:
Firetrail is an investment management boutique founded in 2018. The firm was established with a goal to align our people with our clients. Importantly, the firm is majority owned by our investment staff and the team is invested alongside our clients in the investment strategies.

Pinnacle Investment Management Limited are partners and minority shareholders in the business.

Prior to establishing Firetrail, the portfolio management team including Patrick Hodgens, Blake Henricks and James Miller worked together at Macquarie for over a decade. The team were responsible for managing the Macquarie High Conviction Fund, which delivered 10.6% p.a. (after fees) from inception in November 2005 to October 2017.
Fund/Strategy Overview:
The Fund provides exposure to a concentrated portfolio of approximately 25 Australian securities at any time.

The process employs an unconstrained approach to fundamental research to identify companies Firetrail believe offer the most attractive forecast returns based on our medium-term view.

The Investment Manager aims to construct a high conviction portfolio of companies which the portfolio management team believes to be undervalued over a 3-year investment horizon.

The portfolio construction methodology takes into account the Investment Manager's conviction in a company, stock specific factors such as a company's volatility and liquidity, the portfolio's overall exposure to macroeconomic or thematic risk, as well as the total risk within the portfolio. Each of these factors will determine a potential investment's suitability and position size in the portfolio.

While the portfolio may hold cash for liquidity purposes, it is typically expected to be close to fully invested.
Other funds operated by manager:
Firetrail Absolute Return Fund, Firetrail Australian Small Companies Fund, Firetrail S3 Global Opportunities Fund, Firetrail S3 Global Opportunities Fund (Hedged)

Investment Details

Investment Terms

Minimum Investment: Minimum Additional Investment: Minimum Term: Investment Frequency:
AU$20,000 AU$5,000 Daily
Regular Savings Option: Regular Savings Min. Amount : Regular Savings Max. Amount : Regular Savings Freq.:
N/A 
Redemption Notice: Redemption Frequency: Notes:
Daily
Distributions: Distribution Frequency: Last Distribution Date: Last Distribution Amount:
Yes 6 Monthly N/A

Structure

Offshore/Onshore: Fund Structure: Share Classes: Trustee/Responsible Entity:
Onshore Unit Trust AU$ Pinnacle Fund Services Limited
Administrator: Prime Broker: Custodian: Legal:
Citigroup N/A Citigroup N/A

Fund Fees

Management Fee: Performance Fee: High Water Mark: Hurdle:
0.9% 15% Yes S&P/ASX 200 Accumulation Index
Buy Spread: Sell spread: Early Redemption Fee: Fees Notes:
0.150% 0.150% Yes

Performance & Risk

Returns

Latest Return Date: Latest Result: Fund Inception Date: Annualised Return:
March 2024 4.76% 14 March 2018 5.70%
Latest 3 Months: Latest 6 Months: Latest 12 Months: Latest 2 Years p.a.:
2.45% 6.20% 6.98% 1.87%
Latest 3 Years p.a.: Latest 4 Years p.a.: Latest 5 Years p.a.: Latest 7 Years p.a.:
5.33% 15.92% 7.18% N/A

Performance Statistics

% Positive Months (S.I.): Average Return: Average +ve Return: Average -ve Return:
58.90% 0.59% 3.38% -3.41%
Best Month: Worst Month: Up Capture Ratio (S.I.): Down Capture Ratio (S.I.):
14.73% -22.97% 80.79% 100.89%
Largest Drawdown (S.I.): Longest Drawdown (S.I.): Current Drawdown (%): Current Drawdown (Months):
-29.57% 15 months 0.00% N/A

Risk

Annualised Standard Deviation (S.I.): Downside Deviation (S.I.): Sortino Ratio (S.I.): -
16.95% 12.44% 0.33 -
Sharpe Ratio (12 months): Sharpe Ratio (3 years): Sharpe Ratio (5 years): Sharpe Ratio (S.I.):
0.29 0.32 0.40 0.33
Please note, Sharpe and Sortino ratios are calculated using the Australian Risk Free Rate

Ranking, Research & Availability

Fund Quintile in its Peer Group (Equity Long - Large Cap - Australia) as at March 2024

AFM's Quintile Rankings show performance and Key Performance Indicators (KPI's) of Firetrail Australian High Conviction Fund compared to a peer group of funds with a similar strategy and geographic mandate. Each green square places a fund in one quintile (or 20%) of its peer group - five indicating that the fund is in the top (best) quintile for the corresponding KPI.

As a reference point the equivalent "quintile" performance of the peer group's underlying market index is also indicated by the red dot.

1 Year
3 Year
5 Year
7 Year
Firetrail Australian High Conviction Fund
ASX200 Total Return

External Research and Ratings: As reported by each Fund Manager.

Lonsec: Highly Recommended, October 2021
Zenith: Highly Recommended, June 2021

Availability:As reported by each Fund Manager.

Available on Investment Platforms:
BT Wrap, HUB24, Macquarie Wrap, Netwealth, Asgard, IOOF, MLC Wrap, AMP MyNorth, BT Panorama, Colonial FirstWrap, MLC Navigator, uXchange, Linear, Mason Stevens

News & Insights

Renewable energy stocks: changing winds?
23 Nov 2023 - Firetrail Investments
Decarbonisation is one of the most important challenges of our time, but it is also often one of the most difficult to successfully invest in.
Read more...
Big opportunities for small cap investors in IPOs and secondary placements
25 Feb 2022 - Firetrail Investments
In this article, we analyse the success of small cap IPOs and placements in 2021, provide key takeaways for investors, and what to expect in capital markets in 2022. We conclude that corporate activity will remain elevated in small...
Read more...
Green by name, going greener by nature!
14 Dec 2021 - Firetrail Investments
Can we be sure that we are removing the same amount of carbon dioxide from the atmosphere as we have emitted as a business? That was the simple question we looked to answer as we approached our business carbon neutrality this year with the...
Read more...

Fund Documents

Manager's Report

Product disclosure/IM

Target Market Determination



Fund Performance

Historical Performance (all figures shown here are net of fees unless otherwise stated)

Year Jan % Feb % Mar % Apr % May % Jun % Jul % Aug % Sep % Oct % Nov % Dec % YTD %
2024 -0.37 -1.84 4.76 N/R N/R N/R N/R N/R N/R N/R N/R N/R 2.45
2023 4.90 -0.59 -0.56 2.92 -0.73 -0.09 4.09 -2.37 -2.89 -4.89 2.84 5.98 8.28
2022 -5.18 2.61 4.11 -1.44 -3.45 -8.39 3.75 1.41 -6.55 4.76 6.24 -1.95 -5.25
2021 0.31 3.56 2.76 2.28 2.33 0.33 0.72 4.03 -1.49 0.62 -0.03 1.96 18.67
2020 1.46 -8.56 -22.97 14.73 5.33 0.12 0.56 2.36 -2.46 2.26 13.70 2.50 3.45
2019 4.13 5.56 -0.24 3.15 -1.78 2.73 3.43 -3.16 0.76 0.30 5.57 -1.44 20.21
2018 N/R N/R -2.32 3.81 2.66 1.53 1.43 -3.22 -0.39 -7.29 -4.61 -1.16 -9.66

Historical Financial Year Performance (all figures shown here are are percentage per month net of fees unless otherwise stated)

Year Jul % Aug % Sep % Oct % Nov % Dec % Jan % Feb % Mar % Apr % May % Jun % FYTD %
2023/2024 4.09 -2.37 -2.89 -4.89 2.84 5.98 -0.37 -1.84 4.76 N/A N/A N/A 4.81
2022/2023 3.75 1.41 -6.55 4.76 6.24 -1.95 4.90 -0.59 -0.56 2.92 -0.73 -0.09 13.57
2021/2022 0.72 4.03 -1.49 0.62 -0.03 1.96 -5.18 2.61 4.11 -1.44 -3.45 -8.39 -6.52
2020/2021 0.56 2.36 -2.46 2.26 13.70 2.50 0.31 3.56 2.76 2.28 2.33 0.33 34.13
2019/2020 3.43 -3.16 0.76 0.30 5.57 -1.44 1.46 -8.56 -22.97 14.73 5.33 0.12 -8.93
2018/2019 1.43 -3.22 -0.39 -7.29 -4.61 -1.16 4.13 5.56 -0.24 3.15 -1.78 2.73 -2.45
2017/2018 N/A N/A N/A N/A N/A N/A N/A N/A -2.32 3.81 2.66 1.53 5.69