START INVESTING

The Fund: Acquisition Strategy

CHROME TEMPLE
May 15, 2024
The Science Of Selection

Results Before Romance
If you had the means to acquire your dream car, regardless of cost, what would you choose? Now, consider what car you would buy solely to generate the highest return—would it be the same? For some, their dream car aligns with investment potential, but for others, the decision is more emotional. For the CHROME TEMPLE Investments Mach 1 Fund ("Mach 1 Fund" or the "Fund"), the approach is grounded in data-driven strategies, removing personal biases to uncover the most profitable opportunity potential.

Future Classics For Future Value
Before delving into our acquisition strategy, it's crucial to understand the foundation upon which the Fund is built: the Fund's Objective and Investment Thesis. Our primary objective is to generate returns from the acquisition, hold and liquidation of performance cars, and our investment thesis focuses on targeting last-of-the-line production vehicles. Combined, these place the Fund’s means of generating potential returns from vehicles that have may become future classics.

Data Driven Investment Strategy
The Fund’s objective and investment thesis provide guidelines, while our acquisition strategy relies on data analysis to identify cars with the best value and growth prospects within these guidelines. Leveraging proprietary statistical models derived from multiple data points, we assess real-time market trends, historical sales results, and predictive indicators. Our models employ two primary approaches: the predictive approach and the indirect markers approach.

Predictive Approach To Vehicle Selection
The predictive approach uses historical data to identify key features indicative of a car's potential as a future classic to deliver returns. Factors such as:

  • Low global production quantities
  • Low mileage for age
  • Exemplary condition
  • High specification desirability
  • Analogue driving inputs
  • Strong provenance records
  • Global appeal
  • Exhibit pricing trends of leading statistical indicators

Indirect Markers Approach To Vehicle Selection
Meanwhile, the indirect markers approach looks at quantitative and qualitative indicators, such as:

  • Analysing recent sales volumes compared to current market availability
  • Assessing manufacturers' production plans
  • Identifying release dates
  • Comparing a model's performance with competitors over time
  • Tracking accidents that affect the finite supply of target cars
  • Reviewing media and social media mentions

The combination of different signals is carefully analysed, leveraging the expertise and specialised know-how of the teams’ analysts and automotive professionals.

Expertise Forging The Path To Success
While our data-driven approach provides invaluable insights, the expertise of our automotive professionals is equally essential. Their nuanced understanding of the automotive market complements quantitative analysis, providing context and qualitative insights that algorithms alone cannot capture.

Bringing Professionalism To Vehicle Investment
In essence, the Fund's acquisition investment strategy blends passion, expertise, and data to uncover market opportunities. With this approach, the Fund strives to surpass the emotionally-driven strategies common among ‘hobby’ collectors, while also democratising a professional automotive investment approach for investors, enthusiasts, and collectors of all kinds.

____________________

Blog Article Disclaimer & References:

CHROME TEMPLE Investments Pty Ltd ACN 640 888 026 is a corporate authorised representative (number 001284056) of SILC Fiduciary Solutions Pty Ltd ACN 638 984 602 (AFS license number 522145), who is limited to general advice and deal by arranging services to wholesale clients relating to the CHROME TEMPLE Investments Mach 1 Fund only.

The use of this site is governed by a Terms of Use Disclaimer. By using this site you acknowledge that you have read the Terms of Use Disclaimer and that you accept and will be bound by the terms thereof. Review the full Disclaimer.

This is general information only and doesn’t take into account your personal objectives, financial situation, or needs. Investment is only available to wholesale clients. Prospective investors should carefully review the Mach 1 Fund’s information memorandum (IM) in full and seek professional advice prior to making any investment decision.

Past performance is not a reliable indicator of future performance and the expected returns of the Fund may not occur as expected or at all. An investor’s balance in the Fund may decrease as well as increase in value.

This blog article was published by CHROME TEMPLE Investments Pty Ltd and reflects the author's opinions on a particular subject matter. The views expressed do not necessarily reflect the performance of the Fund nor reflect the opinions of the Trustee or their affiliates.

____________________


Continue Reading:
The Fund Intro 00: Genesis
The Fund Intro 01: Objective
The Fund Intro 02: Investment Thesis
The Fund Intro 04: Fund Structure
The Fund Intro 05: Governance & Oversight

Contact Us:
Start A Conversation