Tyndall has confirmed that it lost more than $700 million out of $1.7 billion in externally raised funds in the past three years as markets went through a particularly strong growth cycle.
Asset management chief executive Michael Good says value investing has made a strong comeback since of last year’s tech wreck.
At the same time, Good says Tyndall has bounced back from its slump with its Australian share value fund returning 22.8 per cent in the past 12 months compared to the ASX 200 Index with returned 9.7 per cent.
“Some clients were not prepared to be patient, despite the logic of long term investing, and ran to growth investments, which meant some were caught with the worst of both cycles, ” Good says.
“We believed value would return and there was a business risk in that. We did lose some business through sticking with our style but it is something we fully believe in.”
Good says the funds had come into the business over a number of years and left primarily in the last three. He says there has been some recovery, not so much by returning clients, but with existing clients expressing confidence in the group and investing further funds.
However Good says the group is not deterred and these events are part of being a specialist manager, which is evidenced through the size of its portfolios which normally hold around 30 stocks.
“We still believe we can generate higher returns and lower volatility than other specialists but we also take bigger bets at the same time,” Good says.
“This means we need to add more value and if they are bigger bets we stand to make higher levels of outperformance.”
Good says the group is pleased with its latest figures but will not start crowing about them until further conclusive results come in.
He says it is too early to push value investing but funds flow to the best performers and the group should gain more recognition when the February results are released.
“There should be increased interest in value and Tyndall in the next three to six months as people look to longer, more stable returns,” Good says.
