Longwave aims to smooth the waters

Wanis, one of three active investment managers presenting to advisers at Pinnacle Investment Management’s equities roadshow in Wellington this week, said most small cap funds are very concentrated and contain 30 to 40 stocks, but Longwave’s fund contains 110 stocks and employs different investment styles “to smooth out the journey for our clients.”

In the last five years, the fund has delivered 9.4% annual returns net of fees, compared with the 7.1% returns from its benchmark, the S&P/ASX Small Ordinaries Accumulation Index.

Highlighting the importance of resources to the Australian economy, Wanis stressed that his company doesn’t ignore any parts of the market and aims for a robust portfolio that will perform in most economic environments.

Its investment universe contains about 1,000 stocks and combines both a fundamental and a systematic approach and has been able to achieve more alpha, or outperformance, at lower fees – its management fee is 0.89% and it charges no performance fee.