How we invest
We specialise in smaller Australian companies and seek to add value for investors through constructing portfolios of differentiated, under-the-radar, highly prospective nano, micro and small-cap equities.
Small, nimble, and prospective
Our strategy is to construct portfolios of high quality smaller company investment opportunities. We specialise in companies with market values below $500m, and in particular, below $100m. Due to their size size and relatively low liquidity, these smaller companies often fall outside the investment universe of many investors, and therefore are more likely to be undervalued and highly prospective.
Focused and disciplined investment process
To identify the most compelling opportunities, we screen and continually monitor our investment universe, seeking to consolidate the vast opportunity set down to a broad watchlist of the most interesting of these. Across the various attributes of business quality, management quality, growth potential, economic position, balance sheet strength, and durable competitive position, we then seek to construct and manage portfolios of the most compelling 30-40 of these ideas.
Multi-Thematic approach
We emphasise a multi-thematic investment approach with multiple ways to win. Opportunities may be categorized thematically as: growing companies with a history of profitability but on still-low multiples; growing companies that are not presently profitable but have potential yet to be recognised in the valuations; and (to a lesser degree) companies trading at meaningful discounts to underlying asset values.
Our Funds
Within the Australian smaller companies universe we manage two funds. DMX Capital Partners Limited with a focus on sub-$100m companies, and DMX Australian Shares Fund which includes those same very small companies but operates with a broader mandate and can invest up the market capitalisation spectrum.
DMX Capital Partners Limited
Investment ObjectiveDual objective to provide genuinely differentiated investment exposure to a difficult to access asset class, and generate strong absolute returns for investors over the medium to long term.
Strategic overview- Thematically diverse portfolio of (typically) 30-40 ASX-listed (and to a small degree, unlisted) smaller companies that have yet to be recognised by the market and therefore offer asymmetrical upside potential
- Primarily focused on sub-$100m market capitalisation companies
- Since inception in 2015, DMX Capital Partners has returned in excess of 20% pa post-fees, pre-tax. This has been achieved in ways that are often different from other funds or investments
17.70%
1 year2.3%
3 year15.6%
5 yearAvailability – Closed to New Investors
Unlisted public investment company structure. Closed to new investors but open to additional investment from existing investors
DMX Australian Shares Fund
Investment ObjectiveDual objective to provide genuinely differentiated investment exposure to a difficult to access asset class, and generate strong absolute returns for investors over the medium to long term.
Strategic overview- Thematically diverse portfolio of (typically) 30-40 ASX-listed (and to a small degree, NZX-listed, or unlisted) smaller companies that have yet to be recognised by the market and therefore offer asymmetrical upside potential
- Primarily focused on sub-$200m market capitalisation companies, but flexible to invest up the market capitalisation spectrum
- Targeting 50%+ overlap with the highly successful DMX Capital Partners Limited portfolio
16.05%
1 year4.28%
3 yearN/A
5 yearAvailability – Open
Unit Trust structure, open to investment from Wholesale Investors only
Why invest with DMX
The DMX portfolios provide exposure to a unique selection of highly prospective, smaller companies that are often difficult to otherwise access and offer the potential for strong long term returns.
Our funds look to support and partner with aspirational, under-the-radar, emerging companies- We have a genuine focus on nano and micro-cap opportunities with asymmetrical return potential
- With their unique compositions, our portfolios may perform quite differently through market cycles. This means they blend well with other assets investors may be exposed to
- An opportunity to partner with a significantly aligned investment management team
- Environmental, Social and Governance considerations feature heavily in our analytical process
- Comprehensive and transparent reporting. This provides detailed insight into what companies we own, and why we own them.
