Precision Opportunities Fund Ltd

Overview

Precision Opportunities Fund Ltd is a boutique investment vehicle that identifies emerging opportunities and undervalued companies listed on the ASX and other recognised exchanges. The fund primarily targets small to mid-cap companies, typically those outside the ASX100, and may also invest in unlisted opportunities with a clear path to market or exit. Through its exposure to the Investment Manager’s network and skill-set, POF intends to provide its Shareholders with access to opportunities not generally available to investors using traditional methods of equity investment. The fund's investment strategy involves identifying and investing in undervalued or emerging companies listed on the ASX or other recognised exchanges, as well as unlisted securities within 12 months of listing. The objective is to produce superior returns to investors by focusing on small to mid-cap sectors. The fund is suitable for investors who wish to gain exposure to small-mid cap companies and are willing to accept highly volatile returns and increased levels of risk over the short term, with the aim of seeking higher returns over the medium to long term. The company should only be considered by wholesale investors with a significant risk tolerance and a long-term investment time horizon. Investment parameters include investing in companies with a market capitalisation less than $1 billion, typically outside the ASX100. No individual investment will comprise more than 10% of the portfolio value at the time of the initial investment, but the company may hold more than 10% of its portfolio value in any one investment if it results from the underlying performance of the initial investment. Any individual investment that grows to over 15% of the total portfolio value will be actively and diligently managed by the investment manager, with the view that no individual investment will exceed 20% of the total portfolio value. The company is permitted to borrow or short sell securities provided that in total, this will comprise not more than 20% of the portfolio value. The company does not use derivatives. No more than 10% of the portfolio value will be invested in unlisted securities at the time of investment. These investments are pre-initial public offering and will be typically near to listing or exit (within 12 months as a maximum). In the absence of compelling investment opportunities, the company may hold a significant level of cash at any given time. The company can invest in short-term trading opportunities that are momentum and sentiment driven in companies with acceptable levels of liquidity.