David Paradice has hired former Macquarie Group analyst David Moberley and is in the process of giving equity in the firm to his colleagues.
Moberley, who Paradice has observed analysing smaller Australian companies for five years, will work with Adam Harvey, Rishi Khilnani and Paradice. The four will manage a $1.5 billion small-cap fund at Paradice Investment Management.
“He doesn’t mind taking a risk, having a go” by joining the firm, says Paradice. He likes Moberley’s fundamental-based research approach “where the only that matters is the stocks”.
Paradice’s small-cap fund had made a net annual return of 21 per cent in the last 11 years, says Paradice. The firm also has a $3.5 billion large-cap fund and a $1.4 billion mid-cap fund. It also has a $150 million global small-cap fund managed in Denver, Colorado by three people.
The Sydney-based firm employs 18 people. Paradice owns 100 per cent of the 11-year old firm but is making other staff shareholders, he says.
Andrew Mitchell and Steven Ng, who ran a micro-investment fund at Paradice, have left the firm to set up their own fund.
Paradice says he may “help them out” though won’t be drawn on how much money he may give them.