Our Approach

We are active, high conviction investors, with a primary focus on bottom-up fundamental stock selection. We do not have a value or growth bias, and instead focus on generating returns on a consistent basis, irrespective of what style bias a company might fit into. We also firmly believe that there is a price for everything, and that the quality of a company changes over time.

“We do not have a value or growth bias, and instead focus on generating returns on a consistent basis”

Risk management is of utmost importance to our process in order to prevent capital loss. A focus on risk is essential, as it is not only about the returns generated – it is just as important to be aware of the risk taken to achieve those returns. Risk management sits at the heart of our investment process; playing both a defensive role in helping avoid losses as well as an offensive role in identifying opportunities. We monitor risk from both a top-down portfolio level and a bottom-up stock level.

“A focus on risk is essential, as it is not only about the returns generated – it is just as important to be aware of the risk taken to achieve those returns”

Opal regularly meets with Australian companies to better understand the changes that are constantly occurring within the companies and the industries in which they operate.  

We are a big believer in specialising in a particular region to deliver optimal alpha for our investors. Opal invests only in Australian markets given our Chief Investment Officer’s history of successfully investing in Australia. In addition, being based in Sydney adds to our natural advantage relative to our offshore peers.

Core Principles

There Is A Price For Everything

Our underlying principle is that there is a price for everything, and that the quality of a company changes over time, rather than simply buying good quality companies and shorting poor quality companies.

Fundamentals Are Important But Not Everything

We strongly believe that in the long term, share prices will trade on their fundamentals. However, we are also acutely aware that in the short to medium term share prices can be impacted by other factors. As a result, being across fundamental, technical and quantitative approaches is critical for us to have a holistic view of how prices are expected to move.

Valuation Is Not Enough, But It Helps

Despite being a fundamental investor, we never take a position purely based on valuation grounds. Valuation is simply a supporting factor which strengthens the investment case. A cheap company can get cheaper, and an expensive company can get more expensive, unless the fundamental drivers behind the company materially change.

Understanding Of Upcoming Catalysts

Our final and most important criteria when initiating any position is to understand any upcoming catalysts that will change the market’s perception of value.