In Australia, smallcap funds have seen varied inflows, with some experiencing significant growth due to strong performance and strategic investments in specific stocks.
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While active fund inflows have been smaller compared to passive ETFs, certain actively managed small-cap funds have still managed to attract investor interest, particularly those with a history of outperforming the market.
Luke Laretive is the CEO of Seneca Financial Solutions and Portfolio Manager of the Seneca Small Companies fund. His smallcap fund returned an impressive +29% for the 12 months through to March 2025, and was the number one performer out of more than 400 other smallcap managers.
On this HotCopper Expert Exchange, Luke discusses four ways his team have made money in Oz small caps and unpacks a current example of each.
Luke’s four winning strategies are:
- Inflecting profitability
- Underappreciated growth
- Undervalued commodities
- Mispriced assets
Luke also explains why sometimes the market is getting it wrong and how investors can take advantage of these opportunities.
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