Black Talon Fund
An Absolute Return Hedge Fund
Black Talon Fund, an Australian unit trust
annual absolute return of 5% above the benchmark over a period of five years
02 May 2022
1.50% (currently rebated back to investors)
15.0% outperformance, with a high-water mark
Trustee and Administrator
AMAL Trustees Pty Limited
Wholesale Investors Only
RBA Cash Rate
Typically 10-25 holdings
Simple in concept, complex in nature
Our investment process is underpinned by a robust and structured methodology with a focused discipline around set parameters and frameworks.
While quantitative analysis and financial models are vital in the critical evaluation of any potential investment, we believe it is the 'artistic' interpretation of that data and skill of the manager which ultimately defines their ability to achieve the investment objective.
While the frameworks around the criteria may be quite rigid, the process around idea generation is quite fluid and creative – often derived from attempting to solve a problem or satisfy a curiosity. Approaching problems in a contrarian but practical manner, promoting one to consider an alternative point of view is encouraged, bringing somewhat of an artist flare to the process.
Research & screening
Once a prospective investment has been identified, an in-depth thorough investigation into the business and its complexities is undertaken to gain an intimate understanding of its operations. A combination of quantitative and qualitative analysis is carried out, including utilising proprietary models and screening criteria which further evaluates its potential inclusion in the portfolio.
collaboration & review
The outcomes derived are subsequently consolidated into a comprehensive report for further deliberation. Management may engage with external advisers and collaborate with industry experts in conducting a detailed review. The merits of the concept, analytical work completed and the overall investment thesis are carefully considered and scrutinised. The purpose of which is to criticise the concept, ‘stress test’ the analysis and challenge the proposal’s strength before ultimately deciding if it warrants investment.
The composition of the portfolio and weighting of any investment will be derived by the overall level of conviction held by management in each particular case. We aim to separate the extent of ‘market noise’ or ‘themes’ which may otherwise artificially inflate the merits of the business being evaluated – fostering an independent, constructive and objective view. This tiered approach enables management to ultimately decide how much capital to deploy and how to deploy it – either directly via equities, or indirectly via other financial instruments – or a combination of both.
How to invest
Please contact us directly if you would like more information on investing with RVM Capital