Balanced Small Cap Fund
Earning enhanced returns through well managed risk is the hallmark of successful small-cap investing. The Tera Balanced Small Cap Fund was created to offer accredited investors a unique, diversified investment product which focuses on the high reward opportunities associated with small-cap investing.
Over time, portfolio success can be attributed to two primary factors: good security selection and well-managed asset allocation decisions. The managers of the Tera Balanced Small Cap Fund bring over 50 years of combined investment expertise in managing client monies to the benefit of the Fund’s investors. This experience includes actively managing companies, not just actively managing portfolios. The balanced mandate of the Fund provides the full range of investment opportunities, not just across industry sectors (mining, through technology) but across all asset classes (debt, equity, income trusts). Because the fund can use options and short selling strategies to enhance income and limit risk, the high volatility that can accompany small cap investing can be reduced.
The Tera Balanced Small Cap Fund focuses on investment opportunities that can potentially return multiples of originally committed dollars. By being an early stage investor taking a longer-term investment horizon and by adhering to investment disciplines developed over decades of public market experience, the objective of the Fund is to provide annual returns in excess of 12% over a full investment cycle.
This specialized investment product will primarily focus on companies with market capitalizations under $500MM, looking for opportunities which, based on strict valuation analyses, have the potential to return 400% over a 4-5 year horizon. Smaller companies have, amongst others, two significant factors in their favor. First of all, small companies have the greatest potential for growth. It is easier to double a $25MM revenue company than a $2.5B revenue company. This translates into greater wealth creation for our clients. And second, because the traditional investment landscape is generally biased towards larger companies, there are few mainstream firms following smaller companies. As a result these opportunities are “under analyzed” and prudent due diligence can be handsomely rewarded.