Oracle Investment Management is a boutique investment manager that provides innovative investment solutions for individuals, families and superannuation funds that are looking to build their wealth. We specialise in the active management of equity and fixed income portfolios that can be tailored to individual circumstances.
At Oracle IM we follow an active high-conviction investing philosophy combined with a bottom-up growth investment process. The Oracle team applies growth, quality, and valuation tests to companies while positioning their investment style towards quality businesses that display sound growth opportunities. We look for great businesses, with enduring competitive advantages that are trading at a discount to their intrinsic or fair value.
We believe being based outside of the major financial centres gives us an advantage over competitors primarily due to avoiding market noise and rumours. This allows us to focus on the long-term prospects of the businesses within our portfolio rather than the day to day gyrations of the market.
Our experienced investment team have developed a proprietary approach to scouring the markets for the best investment opportunities and our vision is to provide our investors with consistently superior returns.
The Oracle Investment Philosophy
Oracle IM takes a high conviction, bottom-up approach to investing, seeking high quality, proven and growing businesses with enduring competitive advantages that are trading at a reasonable valuation. What this means is that we focus on company fundamentals first, assessing the earnings growth potential and the likelihood of returns of capital to investors before assessing the impacts of the macroeconomic environment to this company.
Our portfolios are long-only and typically will own between 20 and 40 stocks, giving investors sufficient diversity to reduce over-exposure to any one stock, while also remaining concentrated enough to experience the benefits of outperformance of individual stocks.
Our Investment Process
Oracle IM employs proprietary screening tools to uncover companies that exhibit the desired characteristics of businesses that we believe will outperform the market over time. These characteristics typically include:
- An enduring competitive advantage, with strong barriers to entry protecting their position in the market
- A proven track record in earnings growth and high return on equity
- A strong balance sheet with little to no debt
- A competent and approachable management team with a demonstrable track record, and alignment with shareholders interests
Our research team prepare extensive financial models and valuations to determine an estimate of the future earnings power of the business based on assumptions we believe are within the realms of possibility. We compare our valuation to current market prices to ascertain whether the company is fairly valued or if the market is being irrational.
Our investment research is not complete until we meet with management. Our team are in regular contact with senior management as part of the investment process and on an ongoing basis with regard to current investments. We believe management contact is central to truly understanding a business. We gravitate towards founder-led management, as this leads to longevity and a high-level alignment with shareholder’s interests.
Our interests are your interests
We believe it is important to practice what you preach, which is why our team are invested in the portfolios alongside investors. We believe this is gives authenticity to our claim that all our ideas are high conviction.
We understand that investors come from all walks of life, each with their own financial goals approaches to risk. This is why we offer 5 different portfolios, each with different investment goals and universes:
- Oracle Emerging Companies Portfolio
- Australian Equities Portfolio
- Oracle Global Equities Portfolio
- Oracle Fixed Income Portfolio
- Oracle Property Securities Portfolio
For more information on our portfolios, please see the Investment Options page.