Welcome to Porter Capital

Laughing Kookaburra

We manage investments for private investors, self-managed funds, and independent financial advisers.

Our proprietary systems:

  • invest in outperforming stocks;
  • identify market risk; and
  • move to cash when risks are elevated.

Our primary objectives are:

  • to protect investor capital from market down-turns; and
  • to outperform the relevant benchmark index over a 5 to 10 year time frame.

Our key strengths are:

  • extensive practical experience in funds management;
  • proprietary systems, rigorously tested for local market conditions;
  • macroeconomic and volatility filters to identify market risk;
  • our ability to exit markets when risks are elevated; and
  • rule-based systems to ensure disciplined, unemotional and objective decision-making
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Market Insights

Are US stocks really over-valued?

Stock Market Capitalization Let us start with Warren Buffet’s favorite market valuation ratio: stock market capitalization to GDP. I have modified this slightly, replacing GDP with GNP, because the former excludes offshore earnings — a significant factor...

Why Fixed Investment is Critical to the US Recovery

The financial sector normally acts as a conduit, channeling savings from private investors to the corporate sector. When the conduit works effectively, the injection of demand from corporate Investment is sufficient to offset the ‘leakage’ from demand...

Dad’s Army fumbles housing affordability

By Leith van Onselen — Published with kind permission from Macrobusiness. After his shoddy effort yesterday defending Australia’s giant superannuation rort, Dad’s Army’s Robert Gottliebsen (“Gotti”), has backed Treasurer Hockey’s proposal to allow young...

Frequently Asked Questions

How is Porter Capital different from other fund managers?

Porter Capital is an active, system-based fund manager.

  • Our Prime Momentum system captures positive market sentiment that overruns existing fundamental values
  • We use macroeconomic and volatility filters to identify market risk
  • Our small and nimble size enables us to enter and exit markets when risks are elevated
  • Our rule-based systems ensure disciplined, unemotional and objective decision-making
  • We combine global academic research, rigorously tested for Australian markets, with extensive practical experience in funds management.
What do Porter Capital do?

Porter Capital’s objective is to preserve and grow investors’ capital. To achieve this, we:

  • Develop investment strategies combining practical experience with global academic research;
  • Rigorously test these strategies for suitability to local markets; and
  • Manage them on behalf of investors.
Is there key man risk? Are investment decisions made by a single individual?

Investment processes are rule-based to ensure disciplined, unemotional and objective decision-making and to minimize key man risk.

Is my investment secure?

Complete separation of duties between the legal entities outlined below serves to mitigate risk for investors:

  • Porter Capital is the Fund Manager, conducting research and managing the investments in shares and/or cash or bonds.
  • Hub24 is the portfolio Administrator and provides comprehensive reporting to investors on portfolio holdings and performance, including tax reporting.
  • HSBC acts as Custodian of the Fund holding securities in their name on behalf of investors.
How often do I receive updates?

You can view your portfolio online 24/7. Performance updates are issued quarterly.

Will I be able to withdraw my funds when I want?

Prime Momentum should be considered a long-term investment (5 to 10 years), but the Administrator has the ability to make daily redemptions (normally paid within a week). Investors can also transfer their investments out of the Account at any time.

Is there a risk of redemptions being frozen?

Prime Momentum only invests in ASX200 equities, Australian government bonds and cash. High liquidity should ensure there is always a ready market for your investments.

Does Porter Capital charge exit fees?

There are no exit fees.

Will I be affected if other investors withdraw their investments?

No. Your investments are not pooled with other investors as in a Unit Trust.

Does Prime Momentum fit with the rest of my portfolio?

When buying shares, it is prudent to diversify your portfolio across a number of companies. In the same way, it is advisable to diversify your portfolio across several different investment strategies. Prime Momentum offers diversification from share investments that you conduct yourself and/or equity-based managed funds due to its low correlation to traditional equity managers and major indices.

Passive, index-based investment strategies have out-performed active strategies in recent years. Why should I invest with an active fund manager?

Prime Momentum uses an active momentum-based strategy in bull markets, but moves to cash and bonds when risks are elevated.

What are the disadvantages of what Porter Capital offers?

Momentum strategies may underperform other investments for a period of time. The strategy may also move to cash and then back into equities in volatile market conditions.

When is the best time to invest in Prime Momentum?

Investors should approach investing in our products with a 5 to 10 year time frame. Accordingly, there is no single best time to invest. Investors are welcome to phase their investment over several months, quarters or even years, but subject always to the investment minimum.

Will the investment be closed to new investors in the future?

Porter Capital’s strategy is to remain nimble. Accounts will be closed to new investors when an increase in size would hinder our ability to move in and out of market positions.

Will I receive income from this investment?

Prime Momentum is not suitable for investors who require regular income. Investors may receive dividends from time to time, but the focus is on capital gains.

We plan to add Australian Prime Income, suitable for Australian investors seeking tax-effective investment income and preservation of capital from inflation and market down-turns. This is currently under development and we will keep investors informed as to progress.

Does Prime Momentum use short-sales, options or leverage?

Prime Momentum does not borrow, short-sell or use derivatives.