Acorn Capital Investment Fund Limited (ASX:ACQ) invests in a diversified portfolio of Microcap Companies.

Microcap Companies are defined by ACQ’s manager, Acorn Capital Limited (the Manager) as those entities which have an equity valuation less than the 250th largest, by full market capitalisation (and not free-float adjusted), ASX-listed entity.  Microcap Companies include both Listed Microcaps (being those listed on ASX) and Unlisted Microcaps (being either entities that are not ASX listed, or non-ASX listed instruments of Listed Microcaps).

ACQ’s primary objective is to achieve after-fee returns on its investment portfolio in the long term that are higher than the S&P/ASX Small Ordinaries Accumulation Index, through long-term capital growth by way of investment in a diversified portfolio of Microcap Companies.  The Manager aims to achieve this objective via investments in Listed Microcaps and Unlisted Microcaps (where the Manager determines that such opportunities present relative better value).

Acorn Capital is a boutique investment manager with a track record of managing investments in Microcap Companies that have outperformed the All Ordinaries Accumulation Index and the S&P/ASX Small Ordinaries Accumulation Index on a per annum basis since 2000.

ACQ has a distinctive investment strategy, through the investment in both Listed Microcaps and Unlisted Microcaps, the second of which potentially provides investors with exposure to a large investment universe (in terms of investment opportunities).

ACQ invests in a diversified portfolio of investments in both Listed Microcaps and Unlisted Microcaps.

ACQ's portfolio is compositionally different to the ASX-250 by both industry sector and stage of development.

The Microcap Companies sector has historically been the breeding ground for the larger capitalised companies of the future.


Investment Philosophy

The Manager seeks to:

  • Identify the best investments within each industry based on relative value, remaining fully invested across all industries;
  • Exploit inefficiencies in the pricing of listed and unlisted microcap stocks;
  • Identify investment opportunities for long term capital growth are identified through research and regular company interaction; and
  • Manage risk through creation of diversified portfolios.

Investment Strategy

  • Research Driven Stock Selection - Significant potential value added due to lack of research in microcap sector
  • Economic Sector Diversified - Enables relative rank, provide diversification by industry, optimise risk / reward
  • Style agnostic - Avoid style bias, capture both growth and value, developing and mature companies
  • Long term investor - Minimise transaction costs and maximise participation in the primary market
  • Stock Numbers - Create diversified portfolios (typically 60-80 stocks) to reduce volatility



Important Information

This product is managed by Acorn Capital Limited ABN 51 082 694 531, AFSL 227605.  This information is general, factual information only and does not take into account the financial objectives, situation or needs of any particular investor.