The Australian newspaper article, page-4

Article: Extract

JANUARY 26, 2023

MARKETS

Where small-cap fund managers are putting their money in 2023

After a horrific 2022, small caps have made a fast start to the new year. But there are still plenty of bargains to be had, according to leading fund managers.

By CLIONA O’DOWD

“One stock Mr Fergie backs as a good investment, despite a 25 per cent rise in the past 12 months, is Quickstep Holdings – with a market cap of just $38m.”

“Working in the aerospace-grade composite manufacturer’s favour is its exposure to the recovering aviation industry, he said.

“One of Quickstep’s main divisions is aircraft maintenance domestically. A lot of that maintenance activity was more recently done overseas, and it’s obviously a lot cheaper for the airlines to do it here. There’s also been a big rebound in aviation and the company also does a lot of production for the defence space.”

“That’s one domestic business that’s got a tiny market cap and is doing some really, really good things in a space that’s got a lot of tailwinds across the board. It’s one we really like and think could continue to do well this year.”