Contrarian value fund launched on ASX
BOUTIQUE fund manager MMC Asset Management and HGL Limited have joined forces to launch a listed investment company seeking to avoid the “herd mentality” of some fund managers.
MMC head Erik Metanomski says larger fund managers are sometimes guilty of getting caught up in market hype, and it is virtually impossible to find a 10-year track record of performance from any manager in the market.
“If most people knew the risks being taken with their money by managers they would think twice about investing with them,” Metanomski says.
MMC Contrarian, as it will be known, will aim to avoid the often irrational behaviour of the market, “by investing in solid, ethical businesses at substantially discounted prices in a bid to preserve capital and produce ongoing returns”.
Metanomski says the partnership with HGL will give MMC a more business-oriented approach that will ensure its funds management direction is answerable to tougher business criteria.
MMC Contrarian aims to raise up to $150 million, with shares issued at $1, with an option allowing for subscription for another share at $1 any time up to June 30, 2005.
The fund will be marketed to financial planners, as well as the clients of stockbroking group Bell Potter Securities, which is sponsoring the capital raising.
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