AUSTRALIA’S Pengana Capital Group has welcomed a new fund this month in response to demand from investors for additional diversification opportunities and access to unique investment products.
The Pengana Alpha Israel Fund, whose Israeli team includes former United Israel Appeal (UIA) shaliach Sagi Ben Yosef, invests in listed Israeli companies with strong global distribution that produce cutting-edge technologies. These Israeli listed companies that have developed solid intellectual property coupled with strong global distribution in an otherwise hard to access market for ‘outsiders’.
The long-only fund is managed by one of the pre-eminent equity fund managers in Israel, Alpha LTI. Established in 2007, the Israel-based boutique manager has a first-rate track record and deep innovation industry ties.
According to CEO of Pengana Capital Group, Russel Pillemer, Australian investors have become increasingly interested in the growth opportunities associated with Israel.
“The reputation of Israel as the ‘start-up state’ is attractive to our investors. This fund focuses on Israeli high growth industries that have a competitive technological, product or market advantage,” he explained.
The Pengana Alpha Israel Fund invests in mature small to mid-cap companies applying a private equity investment approach to listed businesses that are under the radar with low analyst coverage, including private IPOs with lucrative growth potential.
“Alpha’s portfolio managers have established strong reputations and have many years of experience investing in equity markets and technology.”
The Israeli group has in excess of $USD350 million under management from private and institutional clients.
“Our fund gives Australians exposure to industries and technology sectors which are either limited, or do not exist, in the Australian marketplace. Think semiconductor industry, solar and water treatment technology, aerospace and electronic defence industries, and cyber security technologies.”
According to Standard & Poor, Fitch and Moody’s – the world’s top credit rating agencies – Israel and Australia are the only two western countries whose 2019 credit rating (reflecting economic growth) is higher than it was before the Global economic meltdown of 2008 (GFC). Currently Israel is rated AA- (its highest rating ever) .
The highly concentrated portfolio consists of approximately 30 companies and will hedge its foreign exchange exposures.
On Monday, November 23 at 5pm (AEST), the investment team will be hosting an open-to-the-public webinar titled ‘Investing in Israeli Technologies’ as part of an effort to introduce investors to the Israeli investable edge. Tickets can be reserved at www.pengana.com/alpha.