About us

Kardinia Capital (Kardinia) is a boutique absolute return investment manager offering a long/short Australian equities capability to both institutional and retail investors.

It was established by Mark Burgess and Kristiaan Rehder, in partnership with Bennelong Funds Management (Bennelong), in August 2011. Mark and Kristiaan have worked together for over 10 years managing the Absolute Return Fund since inception in May 2006.

Mark and Kristiaan jointly manage the Bennelong Kardinia Absolute Return Fund, for which Bennelong is the Responsible Entity. The Fund is a long/short Australian equity product with the long-term objective to achieve returns in excess of 10% per annum through an investment cycle, with an overarching philosohphy of capital protection(1). Core to the strategy is long-term fundamental stock selection to create a high conviction portfolio of between 20-50 stocks.

Kardinia won the 2012 Australian Equities - Long/Short Fund Manager and the 2013 Australian Equities – Alternative Strategies award at the Professional Planner/Zenith Fund Awards.

 

(1) There is no guarantee that this objective will be achieved, it is only an indication of the intended target return.

Our Team

Mark Burgess Portfolio Manager

Mark Burgess

CFA®, BEc

Mark is a CFA® charterholder with over 32 years of experience in the financial services industry in Australia, London and New York. Mark has been the Portfolio Manager of the Absolute Return Fund since inception in 2006 and prior to that founded Angle Investment Management, a specialist absolute return manager. The first 15 years of his career were spent as a stockbroker with ANZ McCaughan, Ord Minnett and JPMorgan.

Mark holds a Bachelor of Economics from Monash University.

Kristiaan Rehder Portfolio Manager

Kristiaan Rehder

CFA®, BCom

Kristiaan is a CFA® charterholder with over 20 years of experience in the broader financial services industry, having worked at Merrill Lynch in their mergers and acquisitions team (both London and Singapore offices), and KPMG Corporate Finance advising on divestments and acquisitions for medium to large-sized private corporations. In his most recent role, Kristiaan was a Portfolio Manager with Herschel Asset Management with responsibilities across the Australian Equity Fund, Concentrated Australian Equity Fund and Absolute Return Fund.

Kristiaan holds a Bachelor of Commerce from the University of Melbourne.

Stuart Larke Senior Investment Analyst

Stuart Larke

CFA®, LLB (Hons), BCom

Stuart is a CFA® charterholder with over 20 years of experience in the financial services industry in Australia. Previously, Stuart was Senior Portfolio Manager/Portfolio Manager, Australian Equities at Telstra Super for five years, where he was responsible for stock selection and portfolio construction. Prior to this, Stuart held various portfolio management and analyst positions at Myer Family Company, Goldman Sachs/JBWere and KPMG Corporate Finance.

Stuart holds a Bachelor of Laws (Honours) and a Bachelor of Commerce from University of Melbourne.

To find out more about our team, please contact us.

Methodology

Investment style

Kardinia's investment style can best be categorised as Growth At a Reasonable Price (GARP), combining elements of both growth investing and value investing. Different investment styles outperform at different stages of a share market cycle, so Kardinia employs a style agnostic approach which allows them to adapt their stock picking to best suit prevailing market conditions.

Kardinia's style is a combination of both top-down and bottom-up investing. The majority of stocks are selected after the team's macroeconomic analysis has identified key investment thematics or trends. They then drill down to the individual company level to identify the stocks which give the best exposure to those particular thematics and trends.

The Kardinia Capital investment style is also risk averse. Capital preservation is a primary investment objective.

Investment process

Kardinia draws on a wide range of sources and screens to generate investment ideas which are then subjected to rigorous fundamental company analysis. A portfolio of long-term core positions is combined with shorter-term trading opportunities.

The asset allocation decision draws upon the experience of the investment team and their analysis of macroeconomic factors and sentiment to determine the level of net equity market exposure for the Fund.

A robust risk management framework is applied at both the portfolio and individual stock level. At the portfolio level conservative exposure limits are employed, avoiding financial leverage. Stop loss limits are used at the individual stock level to contain losses. Derivatives are also occasionally used to hedge physical positions.