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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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TAMIM Fund Australia Small Cap Income 2024 Q2 Investor Letter | Buyside Digest

Back to Fund Profile (TAMIM Fund Australia Small Cap Income)

Primary Source Intelligence • Q2 2024 Letter Analysis

TAMIM Fund Australia Small Cap Income Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, TAMIM Fund Australia Small Cap Income. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

YTD+0.03%

Annualized+11.35%

Positioning StanceConstructive

Market CapSmallCap

Digest Analysis

Quick Take

"Multiple takeovers validated their approach. Current holdings like SRG, CAF, and MCP trade at attractive valuations with strong dividend yields."

Executive Summary

TAMIM Small Cap Fund delivered strong performance in FY24 with +19.53% net returns versus Small Ords +9.35%, driven by their focus on profitable, growing small/mid cap stocks that are undervalued or overlooked for non-fundamental reasons. The fund targets companies with leading strategic positions, founder-led management with significant shareholding, and strong fundamentals backed by profits and balance sheet strength. This approach led to several successful takeovers during FY24 including SYM, VHT, PSQ, TSK, LNK, QIP, and CNW. Key holdings include SRG Global with $500m in new contracts and trading at 4x EV/EBITDA, Centrepoint Alliance forecasting upper end of EBITDA guidance and trading at 7x EBITDA with 9.5% dividend yield, and McPherson's undergoing transformation with improved margins and potential takeover appeal at 3.5x EV/EBIT. The manager expects M&A activity to accelerate in the latter part of the calendar year and anticipates August reporting to provide rich catalysts for portfolio performance.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

80%

CautiousHigh

High Conviction (80%)

The manager expresses strong confidence in their small-cap strategy and detailed portfolio holdings, citing significant outperformance (+19.53% net return in FY24) and clear catalysts for key positions.

Growth Outlook

60%

BearishBullish

Neutral (60%)

The manager maintains a positive outlook on small caps, projecting increased M&A activity in late 2024 and strong reporting period catalysts to drive the fund's next leg up.

Risk Appetite

50%

DefensiveAggressive

Balanced (50%)

The fund maintains an 88.5% equity exposure focused on small/mid-cap growth and value opportunities, balanced by an 11.5% cash buffer and defensive sector choices.

Capital Deployment

50%

De-riskingDeploying

Net Neutral (50%)

With 88.5% allocated to equities and 11.5% in cash, capital is predominantly active while maintaining operational flexibility.

Forward Guidance

70%

CautiousExpansionary

Expansionary (70%)

Forward expectations are highly positive, anticipating rich catalysts from upcoming earnings season and potential M&A takeovers among current holdings.

Language Signal

80%

BearishBullish

Bullish (80%)

The tone is decisive, enthusiastic, and highly assertive regarding the intrinsic value and upside potential of featured holdings.

Perceived Risk

40%

Low RiskElevated

Moderate Risk (40%)

While macroeconomic conditions present discretionary spending headwinds, the manager mitigates risk by prioritizing defensive business models, low debt, and strong balance sheets.

Opportunity Density

60%

ScarceAbundant

Selective (60%)

The manager identifies significant market mispricing among profitable small/mid-caps and highlights multiple target-rich names in the report.

Time Horizon

50%

Short-TermLong-Term

Multi-Year (50%)

Focus spans multi-year strategic transformations, corporate restructures, and long-term contract value, while remaining attentive to near-term reporting catalysts.