Overseas Wholesale Investors
Monthly Unit Price
Totus Alpha Offshore Fund
Legal Structure
The Totus Alpha Offshore Feeder Fund (the “Fund”) is available only to investors to whom an offer to invest in the Fund may lawfully be made under the applicable laws of the relevant jurisdiction where the investor is located or the offer is received. The Fund and the Totus Alpha Offshore Fund (the “Master Fund”) are Cayman Islands exempted companies with limited liability incorporated under the laws of the Cayman Islands on 30 April 2018. The Fund and the Master Fund fall within the definition of a “Mutual Fund” in terms of the Mutual Funds Law of the Cayman Islands and, accordingly, are regulated in terms of that law and are subject to the supervision of the Cayman Islands Monetary Authority.
As the offering or purchase of the participating shares in the Fund (“Shares”) is restricted in many jurisdictions, the information provided is for general guidance only, and it is the responsibility of any persons wishing to view the Private Placement Memorandum or to invest in the Fund to inform themselves of, and to observe, all applicable laws and regulations of any relevant jurisdiction. Each investor considering investing in the Fund must consult their own legal and tax advisers to determine the possible tax or other consequences of purchasing, holding and redeeming Shares under laws of their respective jurisdictions.
The Private Placement Memorandum is available from Totus Alpha Management Pty Ltd (the “Investment Manager”). The Fund’s Directors may decline to accept the subscription of any prospective investor.
Investment Strategy
The Fund is a long short investment fund principally investing in listed equities and index futures in Australia and internationally. The Fund is not a market neutral fund and accordingly may switch between net long positions and net short positions. The Fund also uses short sales and derivatives with the objective of generating absolute returns and to hedge the exposure of the portfolio.
The Fund, through its investment in the Master Fund, seeks to deliver consistent, strong risk-adjusted returns with relatively low volatility whilst maintaining little to no correlation to equity or bond markets over the long term, through active company and industry research. The investment manager identifies medium to longer-term structural investment themes that are used to focus the analyst’s research efforts. The team then performs extensive bottom up research to identify securities that have concentrated exposure to these themes. Totus focuses on businesses with a demonstrated track record of profitability, high returns and strong cash flow generation for long investments. These investments are balanced with short positions in lower quality businesses that are facing cyclical and/or structural headwinds, deteriorating earnings quality, and catalysts for share price underperformance.
Gearing may be used, which may magnify returns or losses, and the Master Fund may be geared in excess of 100% of its net asset value. There is currently no maximum limit on how much the Master Fund may borrow but it is envisaged that the gross exposure will generally not be more than 350% of the Master Fund’s net assets.
Further information is contained in the Private Placement Memorandum, which is available from the Investment Manager.
Risks
An investment in the Fund involves a high degree of risk. There is no guarantee that the Fund will achieve its investment objective or generate positive returns. Investors could lose some or all of their invested capital. Investors may not be able to redeem their investment at a time of their choosing.
Further information about these and other risks is contained in the Private Placement Memorandum, which is available from the Investment Manager.
Contact Details
Inquiries concerning the Fund and the Shares, including requesting the Private Placement Memorandum or subscription and redemption procedures, should be directed to the Investment Manager.
Investment Manager
Totus Alpha Management Pty Ltd
Level 8, 139 Macquarie Street
Sydney NSW 2000 Australia
Email: ir@totuscapital.com.au
Phone: +61 2 8072 9945
Fund registered office
c/o Walkers Corporate Limited
Cayman Corporate Centre
27 Hospital Road, George Town, Grand Cayman KY1-9008
Cayman Islands
Fund Administrator
Citco Fund Administration (Cayman Islands) Limited
89 Nexus Way, 2nd Floor
Camana Bay, Grand Cayman KY1-1205
Cayman Islands
Sub-Administrator
CITCO Fund Services (Australia) Pty Ltd
Level 22, 45 Clarence Street
Sydney NSW 2000 Australia
Auditor
Grant Thornton
2nd floor, Century Yard
Cricket Square, 171 Elgin Avenue
George Town, PO Box 1044
Grand Cayman, KY1-1102
Cayman Islands