Select makes alternative appointment

Select Asset Management has appointed Sam Armstrong, co-founder of Quay Partners, considered Australia’s first private equity fund of funds group, as a consultant to its alternatives portfolio.

Armstrong’s appointment is intended to bring a “greater depth of analytical expertise” to both the listed and unlisted private equity funds within the portfolio, according to chief investment officer Dominic McCormick.

He said Armstrong’s appointment comes at a time when the Australian investment management community experiences an increased appetite for alternatives.

“We believe the appointment will enhance our ability to provide opportunities for those investors willing to take a disciplined and contrarian approach to alternatives, with a full understanding of the additional complexities that arise in a listed structure.

“It comes at a time as the risks of blindly buying these listed alternatives as an easy way to obtain exposure to alternative investments, are becoming clearer, with many recently floated funds now trading at a discount.

McCormick said “one of the factors that makes the portfolio unique in Australia is its exposure to private equity, which is typically a difficult asset class for investors to obtain exposure to”.

“This is primarily because mainstream wholesale unlisted private equity funds are generally illiquid and are only open to institutional investors.”

Select launched the Alternatives Portfolio on April 1, 2004.