Dorado Fund

Dorado is an Australian Listed Resource Sector Focused Equity Long Short, with potential for significant long-term capital growth with less correlation or drawdowns typically related to long only resource stock investments.

Objective

Potential for significant long-term capital growth with less correlation or drawdowns typically related to long only resource stock investments.

Competitive Advantage

Greater opportunities for alpha exist outside of the S&P/ASX 200 as small cap stocks are typically less researched than larger cap stocks.

The Investment Manager intends to invest in companies, in the Investment Manager’s view that have sound business practices, with promising or proven resources, with experienced management teams, which are trading at significant discounts to valuation and take short positions where these elements are absent.

Long Short provides additional tools to achieve positive absolute returns by managing downside risk and reducing volatility & beta, through actively managing gross and net exposure. The strategy offers additional sources of alpha compared to pure long only investment in resource stocks, such as exploiting valuation gaps between stocks (pair trades) and shorting overvalued stocks.

Portfolio Manager

Sam Brandenburg

  • Sam has been involved with financial markets at BB Capital, a private family office since 2005.  At BB Capital, Sam was a Portfolio Manager and Resource Sector Analyst. 
  • Has extensive experience with financing both listed and unlisted resource companies.
  • Prior experience also involved consulting to resource companies and Government Departments during the business case stage.
  • Sam holds a degree in Civil Engineering and prior to BB Capital spent 10 years in project management delivering major building and civil infrastructure projects.
  • As a Portfolio Manager, Sam has successfully combined his experience in Financial Markets and Engineering.
Monthly Performance
Performance VAMI
Statistics

Key information

INVESTMENT GUIDELINES

 

Dorado

Geographical Focus

Australia

Sector Focus

Resource Sector

Target Return

10%

Long Short Bias

None

Beta to Global Equities

0.0-0.2x

Volatility Target

5-7%

Typical Gross Exposure

70-100%

Typical Net Exposure

+/- 0-20%

Regional & Sector Limits

None

Typical Position Size

2-5%

Number of Long Positions

20-40

Number of Short Positions

0-10

Volatility Target

5-7%

 

FUND TERMS

The Funds key terms are summarised below.  For further details please refer to the latest Information Memorandum.

Fund Name Dorado Fund
Trustee Quay Fund Services
Investment
Manager
Coaster Capital
Prime Broker &
Custodian
Morgan Stanley
Fund
Administrator &
Unit Registry
Apex Fund Services
Investment
Strategy
The Investment Manager’s geographic focus is Australia. The Investment Manager may take exposures outside of this region to the extent that the exposure is intended to mitigate risk or enhance return from factors external to the Australian market. Whilst the Investment Manager’s primary strategy is focused on long/short Australian equities, the ability to retain discretionary powers to allocate funds across a number of other investment strategies and asset classes is reserved. These strategies may include convertible bond investments, portfolio hedging, equity related arbitrage and special situations (e.g. merger arbitrage, rights offerings, participation in international public offerings and placements, etc.).
Investor Eligibility Wholesale Clients, as defined in the Corporations Act 2001
Fund Benchmark The Reserve Bank of Australia Cash Rate
Minimum Investment $50,000
Management Fee 2% per annum (plus GST) of the Net Asset Value of the Class, calculated monthly and payable monthly in arrears.
Performance Fee 20% per year of the increase in Net Asset Value (NAV) per Unit above the Benchmark Performance, subject to the High Water Mark.
Buy/Sell Spread Nil
Entry Exit Fees Nil
Applications Monthly on subscription day
Redemptions Monthly, with 90 days’ notice, subject to possible suspensions in certain situations – refer to Information Memorandum
Valuations Monthly, on the last calendar day of the month
Distributions Annually as at 30 June
 
  1. The management fee is payable to the Investment Manager for managing the investments of the Fund. The management fee is calculated on the Fund’s net asset value, reflected in the monthly unit price and payable monthly in arrears from the Fund.

  2. Fees are exclusive of GST and of any applicable reduced input tax credits (‘RITC’).

  3. The performance fee is calculated and accrued each business day and is payable semi-annually, subject to the high-watermark, and only if applicable

  4. The Trustee has the discretion to accept lower initial and subsequent investments.