SQM Research re-affirms rating for Loftus Peak’s Global Disruption Fund

Elaine ZhangFeatured, Press

Loftus Peak is pleased to announce that SQM Research has re-affirmed the rating for Loftus Peak’s Global Disruption Fund at 4.25 stars. The Fund has maintained its position in the ‘Superior’ category. The team is pleased that SQM continues to recognise the sound basis of our disruption strategy.

Some points highlighted by SQM Research house:


The team at Loftus Peak possesses considerable experience, knowledge and understanding regarding the concept of disruption and how to best filter opportunities. Being a small boutique fund manager, the team functions as a collaborative and cohesive unit.

The investment philosophy combines thematic and fundamental approaches, which together assist in managing risk and optimising returns. The Fund’s idea generation includes sources that are not often employed by traditional fundamental managers.

The investment process is robust and focuses on valuing stocks via discounted cash flows. The methodology includes elements that control or manage the risks inherent in valuing disruptive companies.

A very strong performance track record when compared with the benchmark and the peer group. The concentrated and high active share nature of the strategy provides the manager with the ability to outperform in a relatively unconstrained manner.

Risk-Adjusted Returns

The Fund’s risk-adjusted returns (as measured by Sharpe and Information ratios) have been substantially better when compared to the peer average.

Loftus Peak Global Disruption Fund Information Ratio vs Peer Average over different periods

The Sharpe ratio is another common measure of risk adjusted returns.

Loftus Peak Global Disruption Fund Sharpe Ratio vs Peer Average over different periods

Diversification for Australian Investors

Relative outperformance during Australian Equity tail events – in the ten largest negative monthly returns for the ASX, the sum of returns was -69.2%. In those same months, the sum of the Loftus Peak Global Disruption Fund returns was -21.3%, a difference of +47.9%. Table below:

SQM suggests these figures point to significant defensive characteristics of the Fund in the face of extreme Australian equity tail risk.


The full SQM report is available on request to financial planners by clicking on the SQM logo at the bottom of the page and completing the subsequent form, or contacting us at enquiry@loftuspeak.com.au.

The Lonsec and Zenith research report is also available using its respective logo at the bottom of the page.


The rating contained in this document is issued by SQM Research Pty Ltd ABN 93 122 592 036 AFSL 421913.  SQM Research is an investment research firm that undertakes research on investment products exclusively for its wholesale clients, utilising a proprietary review and star rating system. The SQM Research star rating system is of a general nature and does not take into account the particular circumstances or needs of any  specific person. The rating may be subject to change at any time. Only licensed financial advisers may use the SQM Research star rating system in determining whether an investment is appropriate to a person’s particular circumstances or needs. You should read the product disclosure statement and consult a licensed financial adviser before making an investment decision in relation to this investment product. SQM Research receives a fee from the Fund Manager for the research and rating of the managed investment scheme

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