PXC Advisors Dynamic Return Strategy
- Return since inception67.8% p.a.
- 30–60 high-conviction positions
- Absolute Return Strategy
Founder and Portfolio Manager
Strategy overview
Strategy inception date
1 January 2024Investment approach
Absolute return global long/short strategy focused on identifying mispricing arising from business or industry inflection points through fundamental bottom-up researchInvestment objective
To achieve strong, positive, risk-adjusted returns over the long termReturn objective
To deliver a net return of at least 10% p.a. to investors over the long term (5–7 years)Investment strategy and investments held
To identify companies where market expectations differ from our assessment of future earnings, with a particular focus on opportunities arising from significant business or industry inflection pointsGeography
Global, focused on liquid stocks in developed and emerging marketsBenchmark
Absolute Return strategyTimeframe
5+ yearsHoldings
Typically, 30–60 positions across longs and shortsPosition sizes
• Long: Typically, 2–10%
• Short: Typically, 1–3%
Net/gross exposure
• Maximum net exposure: 1.5x
• Maximum gross exposure: 3.0x
• Typical net long: 30–100%
• Typical gross: 100–200%
Investment Philosophy
We believe value is often mispriced at business or industry inflection points. Underpinning our philosophy are three core beliefs:
- Valuation and quality drive long-term share price performance
- Inflection points create opportunity
- Independent research creates edge
Investment Process
Our investment process combines bottom-up company research with a thematic understanding of the major forces shaping industries and markets. We engage extensively with company management teams, customers, suppliers, competitors and industry experts to develop differentiated investment insights.
Every investment idea is supported by proprietary financial modelling and a detailed assessment of management quality, industry structure and business trends. We seek to identify companies where our assessment of future earnings and value differs meaningfully from prevailing market expectations.
Portfolio Construction
The PXC Advisors Dynamic Return Fund typically holds a concentrated portfolio of 30–60 long and short positions and is unconstrained by benchmark, sector, geography or market capitalisation. Position sizing reflects conviction, expected return potential, downside risk and liquidity, with the portfolio focused on the team’s highest-conviction investment ideas.
A distinguishing feature of the strategy is its dynamic approach to market exposure. Net exposure is actively adjusted to reflect the balance of opportunities and risks identified through the research process, enabling the portfolio to adapt as market conditions and opportunity sets evolve.
Risk Management
Risk management is integrated throughout the investment process. Investment theses and valuation targets are continually reassessed through ongoing research, with positions reduced or exited when the original investment thesis is no longer intact, valuation support has diminished or more attractive opportunities have emerge elsewhere.
The team also maintains limited tolerance for unexplained adverse share price movements, recognising that preserving capital is an essential component of delivering attractive long-term returns.
Strategy performance
How to Invest
How to invest in the PXC Advisors Dynamic Return Strategy
Additional resources
Private Placement Memorandum (PPM)
Please contact us for further assistance.