Brookvine Teams With US Partner For New Micro Cap Fund

Posted: April 2018

Investment marketing specialist Brookvine is preparing to launch a new fund, the THB International Micro Cap Fund.

Brookvine, which helps private equity firms and alternative asset managers raise money, launched a US-focused version of the fund in 2014 and plans its global equities counterpart for July 2018.

The new fund will invest in a broadly diversified portfolio of micro cap stocks in 22 of the 23 developed markets excluding the United States, but including Australia.

Micro caps have been a rich source of interest for local investors, although a volatile one.

As a starting point, the manager is looking to raise somewhere between $10 million and $20 million from Australian investors.

Chris Cuesta, the New York-based chief executive of THB and co-portfolio manager of THB’s micro cap strategies since 2002, is planning to meet potential investors in June.

According to the latest quarterly for the US micro cap fund, THB has returned 13.4 per cent annualised and after fees since inception, versus its benchmark (Russell Micro cap) return of 8.2 per cent but underperformed over 2017 with a return of 10.7 per cent versus 13.2 per cent for the market.

In the fourth-quarter, its top performers were Overstock.com, Allied Motion Technologies, USA Technologies and Exactech.

Brookvine seeks to partner with fund managers to source differentiated and value-adding investment opportunities.

The Steven Hall-led firm has sourced about $12 billion for its fund manager partners since hanging up its shingle in 2001.