The Beautiful River Torrens in Adelaide,


Southern Asset Management Pty Ltd is an investment management firm located in Adelaide, South Australia. It is the investment manager of Southern Capital Unit Trust (the “Fund”), a privately-held trust which invests in the public markets with a value-oriented framework.

The Fund’s objective is to preserve unitholder wealth by attempting to minimise the risk of permanent capital loss and to earn double-digit annualised returns for investors over the long-term.

Investment Philosophy

While many who operate in the public markets view stocks merely as pieces of paper and quotes bouncing around on a screen, we view a stock as a fractional ownership interest in a business. We make investments based on bottom-up fundamental research, not macroeconomic forecasts or attempts at timing the market. We focus on the underlying economics of a business and the long-term trajectory of cash flows, not the recent fluctuations in the stock price.

Our approach is inspired by the Gujrati word, Dhandho (pronounced dhun-doe), loosely translated, means “endeavours that create wealth while taking virtually no risk”, and Warren Buffett’s baseball analogy of likening the investor to a batter in a game where no balls or strikes are called.

The expected payoffs of the businesses we aim to buy can be summarised as “heads we win, tails we don’t lose much”. As guardians of our investors’ capital, we take our fiduciary responsibilities seriously and prioritise the importance of capital preservation. For this reason, we will be selective with our batting decisions and only swing at pitches that land in our “sweet spot”. This will inevitably cause us to miss many opportunities, but it will help us to avoid costly mistakes. As a result, we may hold a large portion of the Fund’s assets in cash until compelling opportunities present themselves.

We believe that great investment opportunities are infrequent and unpredictable. When we spot one we like you can expect us to invest a high proportion of the Fund in that investment. We think it makes sense to concentrate in a handful of our best ideas, rather than diversifying into lower conviction investments for the sake of diversity.

We segment investments into two buckets which we define as Core Holdings and Opportunistic Investments:

Our preference is to allocate capital towards companies trading at around half of their underlying business value, possess long reinvestment runways with attractive economics and are run by owner oriented management which employ capital allocation strategies consistent with long term wealth creation. These investments are treated as core holdings of the Fund and we expect to earn returns through participating in the long-term ownership of these businesses.

We may also invest in event-driven situations, mostly involving securities trading at a discount to breakup or liquidation value. With these securities, we assess the likelihood of a near term catalyst which may bring about a partial or complete realisation of a firm’s value, closing the gap between its share price and intrinsic value. Such events may include the orderly sale or liquidation of a business, corporate spinoffs or major asset sales. Investments in these securities are viewed as opportunistic and, ideally, they have short time horizons.

​Southern Asset Management looks to partner with like-minded investors who are interested in a patient, long-term investment strategy that is rooted in the principles of value investing. ​If you have any questions about investing with Southern Asset Management, please contact Trent Daly at

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