With more than $370 million of funds under management and a focus on long-term investing, Forager Funds is a unique Australian asset management company.
Following a strong eight-year track record, Forager is a sustainable business but is nimble enough to invest in smaller listed companies not accessible to many investment managers.
The company is majority owned by staff and Forager’s external shareholders support the desire to place performance before revenue. That means capping the size of funds before too much money becomes an impediment to performance.
Key investment staff are strongly aligned with investors through co-investment and equity in the Forager business.
Over 15 years ago, John Addis and Robert Carey founded a stock-market newsletter called The Intelligent Investor. The aim was to make the opaque and conflicted world of investing accessible to a growing army of DIY investors. They were joined by value investing fanatic Greg Hoffman in 2001 and, in 2004, Greg roped his childhood friend and fellow value investing fanatic Steve Johnson into a buyout of the company.
In 2009, Steve launched a funds management business, Intelligent Investor Funds Management. The aim was to provide subscribers to Intelligent Investor access to the smaller, sometimes more complicated investment opportunities still associated with the Forager Australian Shares Fund.
The business grew and the International Shares Fund was established in early 2013. In 2014, the publishing business, along with the Intelligent Investor brand, was sold to ASX-listed company Australasian Wealth Investments.
Intelligent Investor Funds Management, still owned by Steve, Greg and the other shareholders, was renamed Forager in July 2014.
Alignment with Investors
Our commitments to investors are as follows. First, we invest our money alongside yours. Second, we plan to restrict the amount of money we accept so that we can stay small and nimble. Third, we will communicate in a clear and transparent way.
It’s our belief that, along with tried and true value investing principles, these commitments give us the best possible chance of success.
Forager’s staff invest a significant portion of their wealth alongside you. And we have committed to limiting the funds to a size that allows them to remain invested in small to medium sized stocks.
One of our competitive advantages is an aligned and patient investor base.
At Forager, attracting the right sort of investor is more important than attracting investors per se.