Expert insights – Stuart Cartledge
Finding undervalued listed securities overlooked by others
Expert insights – Stuart Cartledge
Finding undervalued listed securities overlooked by others
MANAGING DIRECTOR, PHOENIX PORTFOLIOS
Stuart Cartledge is the founder and Managing Director of Phoenix Portfolios and the Portfolio Manager for the award-winning Cromwell Phoenix Property Securities Fund. Prior to establishing the business in 2006, Stuart had built a very strong track record in the listed property security asset class in his role as Head of Property Securities at Citigroup Asset Management. Stuart has been actively managing portfolios of domestic securities since 1993 and was instrumental to building the A-REIT business at Citigroup. Stuart holds a master’s degree in engineering and management from the University of Birmingham and is a Chartered Financial Analyst.
Phoenix Portfolios is a boutique funds management business, with a sharp focus on three distinct investment strategies, made available to retail investors via three Funds.
- The Cromwell Phoenix Property Securities Fund was launched in 2008, to invest in locally listed property and property related securities.
- The Cromwell Phoenix Opportunities Fund was launched in 2011, and its focus is also domestic, but is predominantly comprised of small / micro-cap stocks.
- Launched at the end of 2019, the Cromwell Phoenix Global Opportunities Fund takes Phoenix into offshore markets, predominantly comprised of offshore small / microcap stocks.
Each of these Funds are distributed by Cromwell Funds Management and managed by Phoenix Portfolios.
Phoenix Portfolio's investment philosophy
Phoenix is a boutique funds management business with a specific focus on niche segments of markets – areas where we can develop a knowledge based competitive edge.
With a low cap on Funds under Management across each product, Phoenix is able to invest in segments of the market that our larger peers have to ignore – this often means we invest in small and complicated opportunities – but with an increased chance of adding value for our clients.
To cater to the much wider universe, we make use of proprietary screens to whittle down the opportunity set into something much more manageable.
Phoenix invests alongside our clients in each of the three funds so our investors are very much aligned to our clients.
Watch an overview of our investment philosophy below
Investing in Australian listed property securities
The Cromwell Phoenix Property Securities Fund invests in locally listed property and property related securities.
The Fund provides investors with exposure to a diverse portfolio of property securities that possess an understandable business model, good governance and are trading below Phoenix’s assessment of intrinsic value. Selecting from a wide investment universe, opportunities are often identified in typically smaller, under-researched yet attractively priced securities which possess compelling investment fundamentals but are overlooked by many managers due to their size.
View the following videos to learn more about the advantages of investing in the listed property securities sector and how we find opportunities, navigate volatility and manage risk.
Why invest in the listed properties securities sector?
Listed property securities allow investors to gain exposure to the returns of commercial property in a diversified manner and by virtue of being listed, they also provide liquidity. Discover more below.
Finding the best opportunities to add value
The key to unearthing opportunities is through fundamental research, assisted by meeting with management teams and conducting site visits of assets.
Phoenix takes the insights from this research and applies it in a rigorous and disciplined way to determine which stocks are held.
Watch the video below to discover more.
Managing risk and navigating volatility
Listed markets can be volatile, but for the vast majority of us, who invest for the long-term, short-term volatility is simply the price we have to pay in order to have liquidity.
As an active manager, we try to take advantage of volatility to add to positions on weakness and reduce positions on strength. Our focus is valuation metrics and looking through market gyrations. Discover more below.
Our track record
Sunland case study
Watch the adjacent video for an in-depth look at how PSF recognised, and took advantage of, an undervalued but profitable stock which had the added value of franking credits.
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Investing in global equities
The Cromwell Phoenix Global Opportunities Fund invests in offshore markets, predominantly comprised of offshore small / microcap stocks.
The Cromwell Phoenix Global Opportunities Fund takes the lessons learned from the Cromwell Phoenix Property Securities Fund and the Cromwell Phoenix Opportunities Fund and seeks offshore listed opportunities, mostly small cap and often under-the-radar of institutional investors.
The Fund is a compelling investment option for investors seeking to gain exposure to a diversified portfolio of international securities trading at a discount to their observable net asset values (NAVs).
View the following videos to learn more about the advantages of investing in global equities and how we find opportunities and manage risk.
An investment in offshore equity markets provides diversification in terms of economies, markets and companies. With Australia representing ~2% of global stock markets, there is a lot of the investment pie we are ignoring, if we focus solely on Australia. Discover more below
GOF is managed in a benchmark unaware manner. Management is about minimising the risk of a permanent loss of capital, not tracking a benchmark. Given the nature of GOF’s universe it is likely that its absolute level of risk will be below that of global benchmarks. Discover more below.
Our Track Record
Preferred Apartments case study
Preferred Apartments was an externally managed property vehicle holding a collection of multi-family (Build-to-Rent) apartments, student accommodation, retail and office assets.
Watch the video adjacent for an in-depth look at how GOF took advantage of various internal and external events affecting the company and eventually sold out at a premium.
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