New small cap manager with large cap research ability
Applying traditional large cap modelling processes to the small cap sector is the competitive raison d’etre of emerging small cap boutique Indian Ocean Rim Asset Management (IOR).
Comprising a decentralised business structure that bases its research hub in Bangalore, India, and key decision-makers in Sydney, chief executive David Shearwood and managing director Drew Wilson believe IOR has the largest team of small cap analysts in the country.
Offering wholesale investors long-only equity exposure to companies falling outside the ASX100 using a neutral style, bottom-up, small cap approach, IOR will initially apply a ceiling of $500 million to funds under management.
Shearwood said that it is currently open for seed investment mandates, but has been trading since March 2006 using the private funds of himself and Wilson, indicating the strength of their commitment to the business.
India was chosen as the research base because of the country’s well-educated, low cost labour pool and favourable time zone, which is only five hours different to Sydney’s.
“Outsourcing is no longer just about call-centres. Higher-level activities are being sent to India every day, including tax, engineering, accounting and medical diagnostics,” said Shearwood.
Wilson’s e-commerce background in the US and Australia was also utilised in developing the technology infrastructure, which allows smooth interaction between the business units located in Bangalore and Australia.
Working closely with Calibre Financial Technology, Wilson said this unique system is an advantage that combines the advantages of a boutique firm, such as lower cost barriers, with strong research.
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