How does ACQ construct its portfolio?

ACQ is managed by Acorn Capital Limited, the pioneer of Emerging Company or “microcap” investing in Australia.

An active, research-driven investment manager, Acorn Capital’s experienced team has a tried and tested active approach of bottom up stock picking as well as sector analysis and thorough valuation techniques that are applied to the assessment of investment opportunities. The research process is vigorous and regular company interaction is undertaken.

The following investment guidelines apply to the implementation of ACQ’s investment strategy:

  • ACQ invests in those ASX listed companies outside the Top 250 by market capitalisation as well as similarly sized unlisted companies, where such opportunities are deemed to be relatively more attractive than their listed peers.
  • A diversified portfolio which reduces volatility. A maximum of 7.5% of the value of the portfolio (at the time of investment) will be directed to any single investment.
  • Maintains broad economic diversity and positions impacted by return profile, size of company and expected capital requirements.
  • Cash holdings will be at a level considered appropriate by the investment manager from time to time.
  • Exposure to unlisted companies will vary with investment rate and as liquidity events occur
  • Can invest in equities or equity linked instruments like convertible debt or debt with attached warrants/options
  • Investment in Australian domiciled companies or those deemed to have a significant Australian link, (for example, having resident Australian management or intent to list on the ASX).

To view ACQ’s latest portfolio information, refer to the Monthly NTA Statement.