Alpha Israel Fund (Wholesale)

The Pengana Alpha Israel Fund invests in listed Israeli companies that produce cutting edge - both high and low tech – technologies. These Israeli listed companies that have developed solid intellectual property coupled with strong global distribution.

The Fund offers Australian investors diversification within global equity exposure to a unique and promising market that is very much skewed to industries and technology sectors which are either limited, or do not exist, in the Australian market place, such as: The Semiconductor Industry, Solar and Water treatment technology, Aerospace and electronic defence industries, Cyber Security technologies.

INVESTMENT STRATEGY

The Pengana Israel Alpha Fund is managed by Alpha LTI, a boutique Israel manager with an impressive track record since 2007. Alpha currently managed in excess of $350m in listed equities. Alpha’s partner in Australia is Pengana Capital Group, a funds management group focused on delivering distinct investment strategies that deliver superior risk-adjusted returns to investors, with a focus on capital preservation.

The fund’s investment strategy is based on comprehensive research of companies and industries in Israel. The managers follows a private-equity approach while typically investing in mature small & mid-cap listed-companies. We typically focus on:

  • companies in high-growth Israeli industries that have competitive technological, product or market advantages;
  • companies that are under the radar with low analyst coverage;
  • companies that have best-in-class management
  • companies that place a fundamental emphasis on free cash flow – enabling consistent dividend payouts;
  • Private IPOs with lucrative growth potential.

The fund invests across four Core Strategies:

  • Value – Valuations are paramount in this strategy and investments will generally be in high-tech or industrial companies with a distinct technological advantage. Investments will be made with a strong margin or safety when comparing price to valuation.
  • Growth – This strategy provides access to the Israeli innovative edge – focusing on companies with significant growth potential.
  • Special situations – While this is the smallest allocation of the four strategies, it provides the potential for the highest return through investments in corporate actions with significant upside potential.
  • Hedging – The Fund purchases downside “insurance” for the portfolio through long-dated index put options. This strategy is designed to protect the portfolio in the case of a significant market correction as well as provide the opportunity to invest when equities are severely oversold.

The Israel opportunity – A global leader in innovation & Technology

  • Israel ranks 2nd in the world in expenditure on research and development as a percentage of GDP.
  • Israel contains the largest number of NASDAQ-listed companies in the world outside of the US and China, despite having a population of less than 9 million people.
  • Largest number of start-ups per capita in the world – around 1 start-up for every 1400 people.
  • 450+ Listed Equity Companies, 64 cross-listed abroad
  • 9 Universities, 12 Nobel Laureates
  • More than 270 multinational corporations (MNCs) have established more than 320 advanced R&D facilities throughout the country to take advantage of Israeli innovation. The list includes the likes of: Google, Apple, Facebook, Microsoft, Intel, Yahoo!, Motorola, HP, Siemens, GE, GM, IBM and Cisco.
  • A number of high-profile exits in recent years – Waze (sold to Google for $13 billion), Mobileye (sold to Intel for $15.3bn), SodaStream (sold to PepsiCo for $3.4bn), etc.
  • Knowledge based economy with highest concentration of PhD’s, engineers & patents filled per capita

The Pengana Alpha Israel Fund is uniquely positioned to capture the investment opportunities in some of Israel’s most attractive sectors with a locally based investment team in possession of an established reputation and deep industry ties.

  • Performance History
  • Fund Facts

    Investment

    Objective

    The goal of the Fund is to achieve long term capital growth by investing

    In Israeli and Israeli related companies, generating returns that

    consistently outperform the relevant benchmarks.  Returns are not

    guaranteed.

    Who Can Invest?

    Wholesale clients as defined in the Corporations Act

    Minimum Investment Amount

    A$250,000

    (Pengana, as trustee of the fund, reserves the right to accept lower investment amounts)

    Fee Structure

    Management fee – 1.5% per annum paid monthly in arrears

    Performance fee – 20% above the Hurdle with a high water mark, paid semi-annually in arrears

    Hurdle

    4%

    Buy/Sell Spread

    0.25% / 0.25%

    Applications and Redemptions

    Monthly

     

    Distribution Frequency

    The Fund aims to pay distributions annually

    Recommended Investment Term

    5+ years

  • Investment Team
    Gabi Dishi web
    Gabi Dishi

    Founder & CEO

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    Michael Weiss web
    Michael Weiss

    Founder & Managing Partner

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    Aviran Revivo web
    Aviran Revivo

    Managing Partner

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    Sagi Ben web
    Sagi Ben Yosef

    Managing Partner

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  • Reports and Resources
    Important Information

    Pengana Alpha Israel Fund