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We invest in a portfolio of global small and mid cap international companies.
Taking a bottom-up approach to investing we undertake deep fundamental research of both the quantitative and qualitative aspects of investee companies.
Our strategy is benchmark unaware because we believe this unconstrained approach allows maximum flexibility to pursue attractive risk-adjusted investments.
Our intention is to hold high-quality businesses that generate attractive returns on capital employed through a full market cycle, with low levels of debt, managed by highly competent and aligned executive teams.
We aim to achieve annualised returns, in excess of the MSCI World SMID Index (after all fees and expenses) measured over a market cycle, which we consider to be seven years.
Number of Stocks
30–40
Market Capitalisation
US$500m – $40bn
Style
Long-only quality
Objective
Benchmark +3% (estimated 8–12% p.a. through the cycle)
Benchmark
MSCI World SMID AUD (Net)
Responsible Entity
The Trust Company (RE Services) Limited part of the Perpetual Group
Administrator
Apex Fund Services
Auditor
Ernst & Young
Fairlight’s investment strategy is executed with an ethical mindset.
We use hard exclusion screens to eliminate harmful industries, such as tobacco, armaments, gambling, alcohol and mining.
Each of the companies we research is also scored across a range of environmental, social and governance (ESG) metrics. These generate a cost of capital charge that is an input into a company’s valuation. Companies with relatively poor ESG practices incur a larger discount rate than those that are best practice.
We practice active ownership by engaging with companies on ESG issues (including disclosure) and voting our proxy rights.
ESG Reports
Fairlight is of the belief that the way a company manages ESG issues is often a good indicator of overall risk levels, governance and general management quality – each a strong determinant of a company’s long-term success. Companies can increase shareholder value by better managing risks related to emerging ESG issues.
Stock Profiles
AI-driven capex has revived an old question: what does the link between corporate growth and stock returns really tell us? The evidence is more nuanced than most assume. We apply this lens to Halma, a long-held stock enjoying a windfall in its photonics business, and why management's disciplined response fits what the evidence favours.
Stock Profiles
The 2026 Q1 earnings season has now concluded. The great majority of portfolio companies reported EPS growth in line with or above market expectations, with every management team maintaining or upgrading annual guidance. In this report, we discuss some of the results and a new portfolio addition.