Boutique equity manager Greencape Capital has attributed its outperformance over the past five years to its belief that market sentiment often masks sound fundamentals.
Greencape portfolio manager Matthew Ryland said the firm had managed to navigate the various bull and bear markets during the five years of its existence while providing returns exceeding 5 per cent per annum after fees to investors.
"Greencape's chief focus going forward remains the vigilant assessment of companies and their ability to generate cash flows and deploy capital in a sustainable and value-adding way," Ryland said.
He added that the recent sell-off in markets had created opportunities for investors, and dividends and franking could be expected to contribute to total returns.
Co-portfolio manager David Pace described Greencape's approach as "vanilla" and based upon fundamental stock analysis.
"Having confidence in our observations and analysis has been important in exploiting market extremes," Pace said.
The Greencape High Conviction Fund and Greencape Broadcap Fund have returned annualised outperformance after fees of 5.79 per cent and 5.04 per cent respectively over five years, and 3.19 per cent and 4.76 per cent on a three-year basis.
Greencape currently has $3 billion in funds under management.