Style

Smarter Money Investments' (SMI) sub-investment manager, Coolabah Capital Investments (CCI), believes that there are unique opportunities to actively exploit pricing inefficiencies in the Australian cash and fixed-interest markets applying a fusion of bottom-up and top-down quantitative valuation analysis combined with qualitative due diligence and research. This encompasses sophisticated statistical modelling techniques. 

CCI brings a robustly "active" investment style, which is common in other asset-classes like equities, to the much more passive and index-orientated fixed-interest domain. More specifically, CCI generates consistent alpha through a number of methods, including but not limited to:

  1. Exploiting inefficiencies in the short-term yield curve without taking capital risks;
  2. Using a highly contrarian yet very dynamic asset-allocation strategy between cash and floating-rate notes depending on the relative value available in each sector; and
  3. Finally, and most importantly, via active asset-selection of mispriced securities using top-down and bottom-up quantitative valuation techniques that will produce risk-adjusted excess returns in the future.

CCI believes that total returns are just as important in fixed-interest as they are elsewhere notwithstanding the "yield" and hold-to-maturity focus of traditional fixed-income managers. CCI is also committed to attracting and retaining top talent to help hunt out risk-adjusted opportunities, which in turn requires appropriate incentives that are aligned with results delivered to our investors.

CCI's business has been built from the ground-up with a desire to bolster risk management by incorporating independent Responsible Entities, independent Fund Administrators, a unique downside directed credit research process, and industrial-grade pre-trade risk and compliance assessment systems. This is a summary only. If you want access to the full researcher site, please click here.